Datawatch October 2014

Po
OCTOBER 2014
ZEMA and FutureSource
Colombian Investors
Solution for Front, Middle, Get Access to
and Back Offices
Global Markets
HKEx Introduces First

Contracts for Aluminium,
Zinc, and Copper
Pending Oil Markets

in China Get Support
from Dubai
How the US Shale Gas Revolution

Curtailed Asian Petrochemicals
Analyzing Market Trends Using ZEMA
By Yi-Jeng Huang
Powered by
New products and
data sources
Delisting of products
and datasources
Potential impact
on data
Changes to data attributes,

replacement of products
Petroleum
Nat Gas
Coal
Softs and
Metals
20
20
20
21
Finance
Natural Gas
Platts Proposes Sublistings for Transco, Zone 6 Non-NY North
Platts to Add Monthly Listing for Transco, Zone 5 Delivered
Argus Creates New European Natural Gas Assessments
Power
Petroleum 8
Platts to Launch New US Clean Tanker Assessments
8
Platts Proposes New USGC-North Brazil Clean Tanker Assessment
8
Platts Adds New US Gasoline and Heating Oil Rationales
9
Platts Creates Asia East-West Fuel Oil Swap Assessments
9
Platts Begins Asia Brent, WTI Futures Assessments
10
Platts Starts Europe Reformate Assessment
10
Platts Adds New Pages and Derivatives Content to PFC Asia
11
Argus Generates New Mediterranean Crude Assessments
12
Argus Introduces New Price Assessment to Asian Bitumen Index
12
Argus Launches New Kikeh Crude Assessment
13
Argus Lists New Russian Fuel Oil Bunker Assessments
13
Calendar Month Average Values Added to Argus Crude
13
NYMEX Begins New Crude Oil Futures for WTI Midland and WTS Crude Oil
14
Platts to Discontinue Falmouth Ex-Wharf Bunker Assessments
14
Platts to Cease Publishing Chile Marine Diesel Oil Assessment
15
Platts to End Some Med, UKC VLCC Dirty Tanker Assessments
15
Platts Discontinues Japan Petrochemicals Export Prices in Yen/KG
17
Platts Removes Japan Domestic Polymers Assessments
17
Argus Ceases Publishing US Fuel Oil Assessment
18
Argus Stops Global Fuel Oil Series
18
DME and INE to Collaborate on Energy Products
18
NYMEX Permits Block Trading for WTI Midland and WTS Futures
19
26
26
27
27
28
28
29
29
30
30
31
31
32
32
32
32
Other
Data
Vendors
Market
Analysis
In Depth
October 2014
Weather and
Emissions
Coal 23
Platts Creates New European, US Steam Coal and Petcoke Freight Assessments
23
Platts Assesses OTC Price for Illinois Basin Coal Futures
23
Argus Introduces Forward Swaps Series for Australian Coal
23
NYMEX Lists New Physically-Delivered Illinois Basin Coal Futures
24
NYMEX Approves Peabody Coalsales, LLC as Terminal for Delivery against Illinois Basin Coal Futures
25
Softs and Metals
Platts to Launch UK Hot Rolled Coil Assessment
Platts to Publish Indian Ferrous Shredded Scrap
Platts to Introduce New Dry Bulk Panamax Assessments
Platts to Create New Supramax, Handysize Dry Bulk Assessments
Platts Introduces eWindow Software for European Biodiesel Barges
Argus Creates The Fertilizer Index Report and Data Feed
Argus Generates New European Steel Feedstock Assessments
Argus Introduces Rare Earths Report and Data Feed
HKEx Begins First Asia Commodities Contracts for Aluminium, Zinc, and Copper
Platts to Remove Weekly FOB China Antimony Price
Platts to Cease Publishing IW Singapore Tim Premium
Platts to Discontinue Daily Kuala Lumpur Tin Price
Argus Ceases Publishing Non-RED Assessments
COMEX Removes Short-Term Gold Option Contract
CME Delists 10 Options on Livestock Futures
Editorial
Power 6
Platts to Launch US Southeast, West Electricity Assessments
6
Argus Adds New Series to European Electricity Publication
7
CWE Pushes Flow-Based Market Coupling Launch to March 2015
7
Summary
Summary
Editorial 4
It Is an Oil Buyers World: Chinese Oil Trading to Get Support from the Middle East
4
Power
Petroleum
Nat Gas
Coal
46
46
46
Softs and
Metals
Weather and Emissions

Argus Adds New California CO2 Assessments
NOAAs Weather Forecasts Go Hyper Local with Next-Generation Weather Model
October 2014
67
3
In Depth
67
Market
Analysis
In Depth
How the US Shale Gas Revolution Curtailed Asian Petrochemicals
Data
Vendors
61
61
62
63
64
65
66
Other
Monthly Market Analysis

Crude Oil Brent vs. WTI: Prompt-Month Contract (NYMEX)
Crude Oil Brent vs. WTI: Forward Curve (NYMEX)
North American Natural Gas Spot Prices (ICE)
Henry Hub Natural Gas Forward Curve (ICE)
Actual Weather (AccuWeather)
Electricity: Day-Ahead Prices (ICE)
Weather and
Emissions
49
49
50
51
53
53
55
56
57
59
Finance
Other 47
Bloomberg Launches New Content Platform, Media Source
47
IHS Chemical Offers Industry Data Room for Assessment of the Dow Chemical Transaction Related to its
Chlorine Value Chain
47
CBOT to Amend the Listing Cycle of the Urea (Prilled) FOB Yuzhny Swaps (Clearing Only) Contract
48
News from Data Vendors
ZEMA and FutureSource for Front, Middle, and Back Offices
ZEMA Equips Users to Better Integrate Curves with Downstream ETRM Systems
New Data Reports from ZEMA
Marex Spectron Launches Major Expansion of Data Coverage
Argus Extends and Completes Third Review of Energy Benchmarks Process in Line with IOSCO PRA Requirements
Rare Earths Market at Pivotal Point Ahead of New China Policies
Tax Values for New Russian Offshore Fields to Be Calculated on Argus-Based Formulas
PEGAS: New Record Volume in September
Flexibilization Is a Central Element of the Further Enhancement of Power Markets
Editorial
Finance 35
DGCX Introduces New Mini INR-EUR and INR-GBP Cross Currency Contracts
35
DGCX Creates New Cash Settled MSCI India Index Contracts
36
Euronext Lists First Trust Eurozone AlphaDEX UCITS ETF
36
Vanguard Adds FTSE North America UCITS, FTSE Developed Europe ex-UK UCITS, and FTSE Developed
World UCITS ETFs to Euronext
37
Euronext to Expand Product Offering By Listing 12 New ComStage ETFs
37
Markit and Hang Seng Indexes Introduce iBoxx Offshore RMB Bond Index Family
37
Nasdaq Lists BlackRock iShares Commodities Select Strategy ETF
38
Nasdaq Adds Vident Core U.S. Bond Strategy ETF
39
NASDAQ OMX Lists the Arrow DWA Tactical ETF
39
NASDAQ OMX Introduces Compass EMP Developed 500 Enhanced Volatility Weighted Index ETF
39
Bloomberg Tradebook Unveils Electronic Request for Quote Service for ETFs
40
4 New BlackRock iShares ETFs Launched on Xetra
40
iShares MSCI France UCITS ETF Launched on Xetra
41
ICE Completes First Phase of Liffe Transition to ICE Futures Europe
41
Colombian Global Market Launches ETFs and Becomes an Investment Option
42
CME Removes Several Stock Index Futures on Options for Standard and Poors
43
CME Delists Several Standard & Poors GSCI Commodity Index Contracts
43
CBOT Removes Dow Jones Industrial Average Index Futures
43
Intercontinental Exchange Completes Acquisition of SuperDerivatives
44
Euronext Opens Dutch and Belgian Equity Options Markets to US Investors
44
BVMF and China Financial Futures Exchange Sign MOU
44
Amendments to CME Cleared OTC Foreign Exchange Contracts
44
Bourse de Montreal Inc. Amends Rule Six for 10 Classes of Equity and ETF Options
45
Summary
33
33
34
Summary
CME Removes Live Cattle Weekly Options

Argus Implements Changes to Metals Codes
Additional CME Globex Listings for US Aluminum Futures Contract
Editorial
Power
Chinese Oil Trading to Get Support

from the Middle East
Summary
Editorial
It Is an Oil Buyers World:
Petroleum
Nat Gas
It is not so common that low prices become the focus of global attention and raise many
concerns. Nonetheless, this is the case in oil markets these days. Somewhat mirroring events from
the year 1986, this summer and fall oil prices collapsed by over 20%, leaving many
wondering what caused this.
Figure 1: WTI and Brent Oil Prices (Data Source: NYMEX)
Coal
Graph created with ZEMA
Softs and
Metals
Finance
Other
Data
Vendors
Market
Analysis
In Depth
October 2014
Weather and
Emissions
There has not been any shortage of explanations about reasons and drivers behind this
phenomenon: feel free to mix and match them and build any combination of probable causes that
suits your fancy.
Increased oil production from the U.S. and Canadian shale deposits have effectively
removed any need for oil imports and have even pushed North American crude to an export
position (since we are on the topic, read this months In-Depth article to learn more).
Reduced productivity and economic activity have contributed to the drop in global
demand, especially from key importers such as China and the European Union.
Saudi Arabia has been sustaining high output as part of war-relief supplies intended to
provide compensation to those affected by the unrest in Iraq.
Unrestricted oil production in Libya, unfettered by internal military fighting, has flooded
the market.
Oil stolen by ISIS and then transported through Turkey and Israel for resale at a heavy discount
has suppressed prices.
The U.S. and Middle East have conspired to ramp up global oil supply in order to push
Power
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ZEMA Inquiries
Bruce Colquhoun
Phone: (604) 790-3299
Email: bruce.c@ze.com
Editorial
Editor
Olga Gorstenko
Phone: 778-296-4183
Email: olga@ze.com
Summary
Petroleum
Nat Gas
Coal
Weather and
Emissions
Other
Data
Vendors
Market
Analysis
In Depth
Finance
very symbolic that now we hear from China

that its long-awaited oil futures contract has
acquired more stable footing. On October 20,
2014, the Dubai Mercantile Exchange (DME)
and the Shanghai International Energy
Exchange (INE) announced a deal to cooperate
on new Asian benchmark crude oil futures. INE
was founded almost a year ago with the main
goal of providing a trading platform for Asian
crude oil, natural gas, and petrochemical
derivatives. Although a number of
technicalities still need to be sorted out, the
Oman crude futures contract the benchmark
for Middle Eastern producers and traders will
provide pricing support for its Asian
counterparty. No doubt this venture will
promote Middle East-China trade flows. These
circumstances lend credence to the U.S.Middle Eastern versus Russia conspiracy
theory; I am not sure, though, what they leave
the U.S. with. f
Softs and
Metals
October 2014
Olga Gorstenko
Editorial
Russia, a country economically dependent

on oil exports, out of its financial comfort
zone. Explanations for the U.S.s behavior
range widely. On one side of the spectrum is
the idea that the U.S., which has been acting
as the torch bearer for sanctions against
Russia for its interference into the affairs of
the Ukraine, is disappointed at the not-sosuccessful outcomes of these sanctions. On
the other side, it has been suggested that
the U.S. is hoping to squeeze Russia out of
the market to gain a larger market share for
its own oil imports.
Amazing, really, that all these experts and
analysts from different parts of the world
cannot agree on what factors are suppressing
prices. It is no surprise that the outlook for
future oil market movements is not unified
either. Some believe that if current low price
levels are sustained into the future, many oil
projects will become economically unviable,
leading to precipitated supply and prices
ultimately returning to their optimal level of
$90-100 per barrel. Others reckon that prices
will remain at $80-85 for the next several years,
supported by shale natural gas, which is
frequently utilized as a substitute for oil, and oil
exploration expansion.
In reality, if you are in the business of
analyzing and especially forecasting oil
markets, you know that the most useful
forecasting tool you ever need is a crystal ball.
That is, unless you work for OPEC:
metaphorically speaking, if you are on the
payroll of the members of this club, inputs for
your price forecasting models are likely to have
more data series, outputs of your
probabilistic simulations may have narrower
probability ranges, and your forecasts in
general will have fewer scenarios. But I digress.
With the future of oil markets remaining in
eternal limbo, one thing is clear: oil
producers have been pushed to the position
of price takers. Buyers are setting the bar and
suppliers are fighting to grab contracts. I find it
Summary
Editorial
Power
Power
Platts to Launch US Southeast, West Electricity Assessments
Petroleum
On December 1, 2014, Platts is set to launch new daily assessments for day-ahead
electricity delivered in the Southeast and Western U.S. Interconnections. New assessments
include on-peak and off-peak day-ahead, bilateral market assessments for the following
delivery locations:
Nat Gas
Coal
Into GTC: Georgia Transmission Corp. system

John Day: The substation for the John Day Dam in Washington State
NOB: The Nevada-Oregon Border is the interface with Pacific DC Line
Pinnacle Peak: A group of substations northeast of Phoenix, Arizona
Westwing: A substation northwest of Phoenix, Arizona
Softs and
Metals
These assessments are to be expressed in $/MWh and published on Platts Electricity Alert,
Platts Market Data, Platts Energy Trader, and Megawatt Daily.
See the original announcement.
Finance
The ZEMA graph below demonstrates an example of ISO/RTO power prices: the AESO Pool Price in $CAD per MWh
between January 1, 2014 and October 26, 2014. The pool price is the average of 60 1-minute system marginal prices.
Only those offers accepted generate power and receive the AESO pool price.
Weather and
Emissions
Other
Data
Vendors
Market
Analysis
In Depth
October 2014
Unit
Frequency
Description
PA0015218
Euro/MWh
Daily
Belgian OTC base load month
PA0015218
Euro/MWh
Daily
Belgian TOC base load month
PA0015219
Euro/MWh
Daily
Belgian OTC base load quarter
PA0015219
Euro/MWh
Daily
Belgian OTC base load quarter
PA0015220
Euro/MWh
Daily
Belgian OTC base load year
PA0015220
Euro/MWh
Daily
Belgian OTC base load year
PA0015221
Euro/MWh
Daily
Belgian OTC base load day-ahead
PA0015221
Euro/MWh
Daily
Belgian OTC base load day-ahead
Nat Gas
Price Type
Petroleum
Time Stamp
Power
PA Code
Editorial
On October 27, 2014, Argus added new assessments to its European Electricity
publication and data module. The following PA code details appeared in the DEL module of
the DAEE folder of server ftp.argusmedia.com.
Summary
Power
Argus Adds New Series to European Electricity Publication
Coal

Develop your own power market data warehouse using ZEMAs best-in-class data collection and validation
functionalities. To learn more, book a complimentary ZEMA demonstration.
Softs and
Metals
CWE Pushes Flow-Based Market Coupling Launch to March 2015
Finance
On September 25, 2014, the partners of the Flow-Based project in Central Western
Europe (CWEBelgium, France, Germany, Luxembourg, and the Netherlands) announced a
new launch date for the project of March 31, 2015, which they claim is the result of an
exceptional situation in the Belgian market this winter.
Weather and
Emissions
APX noted that the Belgian transmission system operator Elia has informed the project
partners about the potential for load shedding this winter. This risk may be reinforced in the
event of extreme meteorological conditions. As a result, the Belgian market will need to cope
with a situation that may lead to potential price spikes and curtailment.
Other
Until March, the daily parallel run of the CWE Flow-Based project will be maintained. The
winter period will demonstrate how the market will behave in this specific scarcity situation.
Project partners and market participants will also gain further insight into the behavior of
Flow-Based in such circumstances.
Data
Vendors
Market
Analysis
The parallel run will be continued over the winter, and the project parties will strive to
complete all technical and regulatory requirements as planned. Project partners will confirm
the technical readiness of the project by the end of November 2014 in order to secure the new
target launch date.
7
In Depth
October 2014
Summary
Editorial
Petroleum
Power
Coal
Specifications for each assessment are included below:
Softs and
Metals
USGC to U.K. Continent: Based on a 65,000-80,000 dwt Long Range 1 tanker carrying a
60,000 mt cargo of clean products from the USGC to U.K. continent, this assessment
reflects the increased amount of refined products leaving the USGC. The assessment
includes loadings from New Orleans and Houston and discharge at Rotterdam
and Antwerp.
Finance
Weather and
Emissions
USGC to Mediterranean: Based on a 65,000-80,000 dwt Long Range 1 tanker carrying

a 60,000 mt cargo of clean products from the USGC to Mediterranean, this assessment
reflects the increased amount of refined products leaving the USGC. The assessment
includes loadings from New Orleans and Houston and discharge at Lavera and Genoa.
Other
Enhance your market analysis using real-time crude oil and petroleum product price data in ZEMA, ZEs data
management solution for oil market participants. To learn more, book a complimentary ZEMA demonstration.
Data
Vendors
Platts Proposes New USGC-North Brazil

Clean Tanker Assessment
Platts proposes to launch a new clean Medium Range tanker freight rate assessment
reflecting flows from the USGC to North Brazil, effective November 18, 2014.
In Depth
Market
Analysis
The assessment will aim to capture newly established supply trends of refined products out of
the region, following significant structural changes to the U.S. oil industry. The assessment will
reflect modern MR tonnage and will be published on a Worldscale basis to reflect how this route
is most commonly traded. Platts will also publish a dollars per metric ton value for this route.
October 2014
Nat Gas
On December 1, 2014, Platts plans to introduce new clean Long Range 1 (LR1) tanker
freight rate assessments that reflect flows from the U.S. Gulf Coast (USGC) to U.K. continent
and Mediterranean. These assessments, published on a Worldscale basis and with a dollars
per metric ton value, aim to capture newly established supply trends of refined products out of
the region. They reflect modern LR1 tonnage that is no more than 15 years old. They are to be
published in Platts Clean Tankerwire and Platts Tanker Alert page PGT 1920.
Petroleum
Platts to Launch New US Clean Tanker Assessments
Editorial
Power
To learn about gasoline prices in Europe and the U.S., use ZEMA to view reports from Platts. To learn more,
visit http://www.ze.com/the-zema-solutions/.
Summary
See the original announcement here.
Petroleum
This assessment will reflect the USGC to North Brazil route for a clean MR tanker carrying a
cargo of 38,000 mt, reflecting loadings from Houston and New Orleans and discharge at ports
including Belem, Manaus, and Sao Luis. This will be published in Platts Clean Tankerwire and
Platts Tanker Alert page PGT 1912.
Platts Adds New US Gasoline and Heating Oil Rationales
Page
Launch Date
Assessment
Symbol
US
388
October 20, 2014
Gasoline Unl Sub Octane Group 3
AAXIX00
US
453
November 5, 2014
ULS Heating Oil USGC Prompt Pipe
AAXFD00
Nat Gas
Region
Petroleum
On October 20, 2014, Platts started publishing the following new assessment rationales
for certain key benchmark gasoline and heating oil assessments in the U.S.
Softs and
Metals
The new rationales appear in key Platts oil publications, including US Marketscan and existing
rationale pages on Platts Global Alert.
Coal
These new rationales are published alongside existing rationales for other U.S. refined product
assessments. Platts also publishes summaries of relevant bids, offers, trades, and data that
may have been excluded from these assessments on existing B/O/T/E pages.

Finance
ZEMA collects over 1,000 data series containing information about petroleum products. To learn how to access this rich
library of crude oil information and transform it into visualizations, book acomplimentary ZEMA demonstration.
Weather and
Emissions
Platts Creates Asia East-West Fuel Oil Swap Assessments
Data
Vendors
The assessed derivatives are differentials between FOB Singapore 180 CST fuel oil paper and
3.5% FOB Rotterdam barge paper. At the same time, Platts launched 3.5% FOB Rotterdam
barge derivative assessments at 4:30 p.m. Singapore time. The new suite of outright price
assessments covers 12 calendar months. Platts also began to publish time-spread paper
assessments for all 12 calendar months and crack spread paper assessments between the
3.5% FOB Rotterdam barge assessments and Brent swaps for all 12 months.
Other
On October 1, 2014, Platts launched new East-West fuel oil spread paper assessments
at 4:30 p.m. Singapore time (08:30 GMT). The new assessments bear the name East-West
Fuel Oil and cover 12 calendar months and 3 quarters. Platts added these assessments to
enhance its coverage of the fuel oil forward curve.
Market
Analysis
In Depth
October 2014
Leverage ZEMAs sophisticated forward curve management functionalities to make more informed trading decisions
about fuel oil prices and petroleum products. To learn more, book a complimentary ZEMA demonstration.
Editorial
Summary
Petroleum
The daily assessments appeared on Platts Global Alert pages 2660 (Platts FO 180 FOB
Singapore vs FO 3.5 Rotterdam Barges) and 2662 (Platts FO 3.5 Rotterdam Barges at
4:30 p.m. Singapore time, time spread, and Brent swap crack spread).
Power
Platts Begins Asia Brent, WTI Futures Assessments
Nat Gas
The new outright price assessments cover 36 granular months, 12 quarters, and 3 years
forward from the date of publication for ICE Brent crude futures contracts, and 4 months for
NYMEX WTI crude futures. Furthermore, Platts will also publish timespreads for all 36 granular
months, 12 quarters, and 3 years for ICE Brent crude, and for 4 months for NYMEX WTI crude.
Petroleum
Effective October 1, 2014, Platts began publishing outright price and timespread
assessments for ICE Brent crude futures and NYMEX WTI crude futures at 4:30 p.m. Singapore
time (08:30 GMT).

Coal
The ZEMA graph below shows Brent Crude Last Day Futures from October 22, 2014 until
October 21, 2016 with a forecast date of October 22, 2014. This data is taken from CME.
Softs and
Metals
Finance
Weather and
Emissions
Other
Data
Vendors
Platts Starts Europe Reformate Assessment
Market
Analysis
Effective October 1, 2014, Platts launched a new assessment for reformate FOB
Amsterdam/Rotterdam barges.
October 2014
10
In Depth
The assessment represents min 99 RON, min 0.810 g/ml density, max 3 ppm sulfur,
max 38 kPa Vapor Pressure, 2% max Benzene, and min 65% Aromatics material. This
Editorial
Power
Petroleum
The codes are as follows:
Summary
The assessment is published as a $/mt value on Platts Global Alert pages 1310, 1112, and
1760, and in the European Marketscan and US Marketscan. The equivalent Euro
denominated value is published on PGA pages 1312 and 1118. A $/mt month average value
will also be published on PGA pages 1311, 1113, and 1761, with the equivalent Euro
denominated value on PGA pages 1310 and 1119.
Petroleum
assessment reflects parcels of 3,000-5,000 mt each, for loading 3-15 days forward
(Monday-Tuesday) or 5-15 days forward (Wednesday-Friday).
Nat Gas
AAXPM00 Reformate FOB AR Barge

AAXPM03 Reformate FOB AR Barge MAvg
AAXPN00 Reformate FOB AR Barge Eur/mt
AAXPN03 Reformate FOB AR Barge Eur/mt MAvg
Coal
Platts Adds New Pages and Derivatives Content to PFC Asia
Platts Gasoline Unleaded 92 Singapore Time Spread Swaps
PPA 2644
Expanded
Platts Gasoline Singapore Swaps
PPA 2645
New Page
Platts Gasoline Unleaded 92 Singapore-Brent, Dubai Cracks
PPA 2649
New Page
Platts Naphtha Japan Time Spread Swaps
PPA 2650
Expanded
Platts Naphtha Japan Swaps
PPA 2651
New Page
Platts Japan vs CIF NWE Naphtha Swaps
PPA 2654
Expanded
Platts Singapore Swap Front Months and Futures
PPA 2660
New Page
Platts FO 180 FOB Singapore vs FO 3.5 Rotterdam Barges
PPA 2662
New Page
Platts FO 3.5 Rotterdam Barges Time Spread Assessments
PPA 2691
New Page
Platts Asia ICE Brent Futures Time Spread Assessments
PPA 2693
New Page
Platts Asia NYMEX WTI Futures Time Spread Assessments
PPA 2695
New Page
Platts Asia WTI-Brent Futures Time Spread Assessments
Market
Analysis
New Page
Data
Vendors
PPA 2643
Other
Content
Weather and
Emissions
Status
Finance
Page
Softs and
Metals
On October 1, 2014, Platts added new pages and content to Platts Forward Curve Asia
(PFC Asia). Platts expanded its coverage of Asian gasoline derivatives, naphtha derivatives,
fuel oil derivatives, and crude oil futures. Further details are included in the table below.
October 2014
11
In Depth
ZEMA combines strengths in oil market data collection, visualization, and analysis, equipping traders and analysts to
make informed business decisions. To learn more, book a complimentary ZEMA demonstration.
Summary
Editorial
Petroleum
Power
Argus Generates New Mediterranean Crude Assessments

Petroleum
On November 3, 2014, Argus introduced new daily assessments to its Argus Crude
publication. Relevant data appeared in the DLC module in the DCRDEEU folder of server
ftp.argusmedia.com.
Price Type
Unit
Frequency Differential Basis Description
PA0015245
USD/bl
Daily
North Sea Dated Basrah Light cif Augusta
PA0015245
USD/bl
Daily
PA0015245
USD/bl
Daily
Coal
Time Stamp
Nat Gas
PA Code
Effective October 15, 2014, Argus introduced the following new price assessment to its Asian
Bitumen Index.
Weather and
Emissions
Changes apply to the DABI files in the DBIOFUELS folder of server ftp.argusmedia.com. New
data codes are price type 4 and have a time stamp of 8.
Unit
Frequency
Description
PA0015178
USD/t
Weekly
Argus Bitumen Index (ABX1) (fob Singapore)
PA0015179
USD/t
Weekly
Argus Bitumen Index (ABX2) (fob South Korea)
Other
PA Code
Finance
Argus Introduces New Price Assessment to

Asian Bitumen Index
Softs and
Metals
Transform raw oil market data into business intelligence using ZEMA, a solution equipped to create and manage complex
commodity curves. To learn more, book a complimentary ZEMA demonstration.
ZEMA collects a range of Argus crude oil and petroleum products data, including data from the Asian Crude (Spot Prices)
record and the Argus Crude record. To learn more, visit http://www.ze.com/the-zema-solutions/.
Data
Vendors
Market
Analysis
12
In Depth
October 2014
Frequency
Description
PA0015180
USD/bl
Daily
Kikeh Official price
Power
Unit
Petroleum

ZEMAs data collection, validation, and storage capabilities enable crude oil market participants to feed downstream
systems with real-time data about prices. To learn more, book a complimentary ZEMA demonstration.
Nat Gas
Argus Lists New Russian Fuel Oil Bunker Assessments

On October 1, 2014, Argus listed new fuel oil bunker series in its Russian Fuel Oil
publication. Relevant data was included in the DARM data module in the /DARM folder of
server ftp.argusmedia.com.
Unit
Frequency Description
PA0015165
26
USD/t
Daily
Fuel oil bunker HSFO 380cst dob Far east $/t
PA0015165
26
USD/t
Daily
PA0015165
26
USD/t
Daily
PA0015166
26
RUB/t
Daily
Fuel oil bunker HSFO 380cst dob Far east RUB/t
PA0015166
26
RUB/t
Daily
PA0015166
26
RUB/t
Daily
Finance
Price Type
Softs and
Metals
Time Stamp
Coal
PA Code
Editorial
PA Code
Summary
Effective October 2, 2014, Argus introduced a new assessment to its crude publication
and data module. The new data code is price type 8 and has a time stamp of 0. The data code
listed below was added to the DMC and DLC modules in the DCRDEASIA folder of
server ftp.argusmedia.com.
Petroleum
Argus Launches New Kikeh Crude Assessment
Weather and
Emissions
Calendar Month Average Values Added to Argus Crude
Other
Effective October 1, 2014, Argus added calendar month average values for the daily
refinery gate value and netback values introduced on September 1, 2014 to Argus Crude.
Data
Vendors
To learn how many crude industry participants use ZEMA to enhance their data collection, validation, and visualization
processes, book a complimentary ZEMA demonstration.
Market
Analysis
13
In Depth
October 2014
Petroleum
Block Trade
First Listed
Minimum Threshold Contract
1141
30 consecutive
months
December
2014
WTT
WTI Midland (Argus) vs. WTI

Trade Month Futures
1142
30 consecutive
months
December
2014
WTS
WTS (Argus) Financial Futures
1140
30 consecutive
months
November
2014
WTA
WTS (Argus) vs. WTI

Financial Futures
1143
30 consecutive
months
November
2014
Softs and
Metals
WTI Midland (Argus) Trade

Month Futures
Coal
WTI
Nat Gas
Rule Chapter Listing Schedule
Power
Also concurrent with the launch of these contracts, the Exchange began to permit block
trading at a minimum threshold of 5 contracts.
Codes Contract Name
Editorial
These new contracts were listed for 30 consecutive contract months on CME Globex, the
NYMEX trading floor, and for submission for clearing through CME ClearPort. The contract size
is 1,000 barrels with a minimum tick size of $0.01 per barrel.
Summary
On October 20, 2014, the New York Mercantile Exchange (NYMEX) listed 4 new
financially-settled U.S. crude oil futures contracts for WTI Midland and WTS crude oil streams
based on indexes provided by Argus.
Petroleum
NYMEX Begins New Crude Oil Futures for WTI Midland and WTS
Crude Oil
Data
Vendors
These assessments are published on Platts Marine Alert, Platts Bunkerwire, and the Platts
price assessment database under the codes of PUAFC00, PUACW00, AASUK00, AASUL00,
and POACU00 respectively.
Market
Analysis
14
In Depth
October 2014
Other
Effective July 1, 2015, Platts proposes to discontinue its Falmouth ex-wharf bunker fuel
assessments of high and low sulfur 380 and 180 CST and marine gasoil (3.5% sulfur IFO
380 CST, 3.5% sulfur IFO 180 CST, 1% sulfur IFO 380 CST, 1% sulfur IFO 180 CST, MGO DMA
0.1%). The discontinuation reflects the changing market conditions within the Northwest
European bunker market, where Platts has observed diminished market liquidity at Falmouth.
Weather and
Emissions
Platts to Discontinue Falmouth Ex-Wharf Bunker Assessments
Finance
ZEMA collects over 4,000 reports from more than 400 data providersusing the solution, crude oil market participants
can easily assemble a customized data warehouse that integrates with a wide range of downstream systems. To learn
more, book a complimentary ZEMA demonstration.
Petroleum
Nat Gas
Platts to End Some Med, UKC VLCC Dirty Tanker Assessments
Coal
Effective April 15, 2015, Platts will discontinue a series of assessments for dirty tanker
spot market rates in markets where the movement of crude and fuel oil has changed
substantially or no longer occurs. These assessments will reflect the fact that oil flows have
changed significantly and that VLCC routes from the Mediterranean and U.K. continent no
longer reflect the most typical trading patterns to various destinations.
Softs and
Metals
A full table showing affected assessments is provided below.

Proposed Discontinuations from MED Origin Points
Dirty Mediterranean-USAC VLCC Worldscale (260kt) MAVG
TDABQ00
Dirty Mediterranean-USAC VLCC $/mt (260kt) Daily
TDABQ03
Dirty Mediterranean-USAC VLCC $/mt (260kt) MAVG
PFAOKSZ
PFAOKSZ Dirty Mediterranean-USAC VLCC cargo size
PFAOL00
PFAOL00 Dirty Mediterranean-Mediterranean VLCC Worldscale (260kt) Daily
PFAPM03
Dirty Mediterranean-Mediterranean VLCC Worldscale (260kt) MAVG
TDABK00
Dirty Mediterranean-Mediterranean VLCC $/mt (260kt) Daily
TDABK03
Dirty Mediterranean-Mediterranean VLCC $/mt (260kt) MAVG
PFAOLSZ
Dirty Mediterranean-Mediterranean VLCC cargo size
PFAOJ00
Dirty Mediterranean-US Gulf Coast VLCC Worldscale (260kt) Daily
PFAPK03
Dirty Mediterranean-US Gulf Coast VLCC Worldscale (260kt) MAVG
TDABT00
Dirty Mediterranean-US Gulf Coast VLCC $/mt (260kt) Daily
TDABT03
Dirty Mediterranean-US Gulf Coast VLCC $/mt (260kt) MAVG
15
In Depth
October 2014
Market
Analysis
PFAPL03
Data
Vendors
Dirty Mediterranean-USAC VLCC Worldscale (260kt) Daily
Other
PFAOK00
Weather and
Emissions
Assessment
Finance
Code
Power
The MDO assessment is currently published on Platts Global Alert page 870, in Platts
Bunkerwire, and in the Platts price database under code AANUA00.
Editorial
The proposed discontinuation reflects the shift in the Chilean market away from marine diesel
oil and to the consumption of marine gasoil. Platts will continue to publish a daily assessment
of MGO delivered Valparaiso, Chile.
Summary
On April 30, 2015, Platts will discontinue its daily spot assessment of marine diesel oil
(MDO) delivered in Valparaiso, Chile.
Petroleum
Platts to Cease Publishing Chile Marine Diesel Oil Assessment
PFAOX00
Dirty Mediterranean-East Coast Canada VLCC Worldscale (260kt) Daily
PFAPN03
PFAPN03 Dirty Mediterranean-East Coast Canada VLCC Worldscale (260kt) MAVG
TDABH00
Dirty Mediterranean-East Coast Canada VLCC $/mt (260kt) Daily
TDABH03
Dirty Mediterranean-East Coast Canada VLCC $/mt (260kt) MAVG
PFAOXSZ
Dirty Mediterranean-East Coast Canada VLCC cargo size
Power
Dirty Mediterranean-US Gulf Coast VLCC cargo size
TDACF00
Dirty UK Continent-US Atlantic Coast VLCC $/mt (270kt) Daily
TDACF03
Dirty UK Continent-US Atlantic Coast VLCC $/mt (270kt) MAVG
PFAOUSZ
Dirty UK Continent-US Atlantic Coast VLCC cargo size
PFAOV00
Dirty UK Continent-US Gulf Coast VLCC Worldscale (270kt) Daily
PFAPQ03
Dirty UK Continent-US Gulf Coast VLCC Worldscale (270kt) MAVG
TDACI00
Dirty UK Continent-US Gulf Coast VLCC $/mt (270kt) Daily
TDACI03
Dirty UK Continent-US Gulf Coast VLCC $/mt (270kt) MAVG
PFAOVSZ
Dirty UK Continent-US Gulf Coast VLCC cargo size
PFAOT00
Dirty UK Continent-East Coast Canada VLCC Worldscale (270kt) Daily
PFAPO03
Dirty UK Continent-East Coast Canada VLCC Worldscale (270kt) MAVG
TDABX00
Dirty UK Continent-East Coast Canada VLCC $/mt (270kt) Daily
TDABX03
Dirty UK Continent-East Coast Canada VLCC $/mt (270kt) MAVG
PFAOTSZ
Dirty UK Continent-East Coast Canada VLCC cargo size
Weather and
Emissions
Dirty UK Continent-US Atlantic Coast VLCC Worldscale (270kt) MAVG
Finance
PFAPP03
Softs and
Metals
Dirty UK Continent-US Atlantic Coast VLCC Worldscale (270kt) Daily
Coal
PFAOU00
Nat Gas
Assessment
Petroleum
Proposed Discontinuations from UKC Origin Points

Code
Editorial
PFAOJSZ
Summary
Assessment
Petroleum
Code
Other
Data
Vendors
Market
Analysis
16
In Depth
October 2014
LDPE average export price Japan Jpy/kg Monthly
AAKQH00
HDPE average export price Japan Jpy/kg Monthly
AAKQI00 PP
(Homo) average export price Jpy/kg Monthly
AAKQJ00 PP
(Copol) average export price Japan Jpy/kg Monthly
AAKQK00
PVC average export price Japan Jpy/kg Monthly
AAKQL00
PS average export price Japan Jpy/kg Monthly
AAKQM00
ABS average export price Japan Jpy/kg Monthly
AASEN00
Toluene average export price Japan Jpy/kg Monthly
Nat Gas
AAKQG00
Petroleum
Description
Power
Symbol
Coal
AALEU00
LLDPE Platts Domestic Japan Jpy/kg Monthly
AALEX00
LLDPE MOF CIF Japan Jpy/kg Monthly
AALEY00
HDPE Film Platts Domestic Japan Jpy/kg Monthly
AALEZ00
HDPE Film MOF CIF Japan Jpy/kg Monthly
AALFA00
PP Homo Platts Domestic Japan Jpy/kg Monthly
AALFB00
PP Homo MOF CIF Japan Jpy/kg Monthly
AALFC00
PP Copol Platts Domestic Japan Jpy/kg Monthly
AALFD00
PP Copol MOF CIF Japan Jpy/kg Monthly
AALFE00
GPPS Platts Domestic Japan Jpy/kg Monthly
AALFF00
GPPS MOF CIF Japan Jpy/kg Monthly
AALFG00
PVC Platts Domestic Japan Jpy/kg Monthly
October 2014
17
In Depth
LDPE MOF CIF Japan Jpy/kg Monthly
Market
Analysis
AALET00
Data
Vendors
LDPE Platts Domestic Japan Jpy/kg Monthly
Other
AALES00
Weather and
Emissions
Description
Finance
On September 30, 2014, Platts ceased publishing its Japan domestic polymers
assessments. These assessments were published on page PCA055 and were found under the
following codes in the Platts database:
Softs and
Metals
Platts Removes Japan Domestic Polymers Assessments
Symbol
Editorial
On September 30, 2014, Platts discontinued its Japan domestic petrochemicals exports
assessments in yen/kilograms. These assessments were published on page PCA356 and
PCA357 and could be found under the following codes in the Platts database:
Summary
Petroleum
Platts Discontinues Japan Petrochemicals

Export Prices in Yen/KG
PVC MOF CIF Japan Jpy/kg Monthly
AALFJ00
ABS Platts Domestic Japan Jpy/kg Monthly
AALFK00
ABS MOF CIF Japan Jpy/kg Monthly
Editorial
AALFH00
Summary
Description
Petroleum
Symbol

Power
Argus Ceases Publishing US Fuel Oil Assessment
Time Stamp
Price Type Unit
Frequency
Description
PA0000826
USD/bl
Daily
Fuel oil No 6 0.3% low-pour NYH
PA0000826
USD/bl
Daily
Fuel oil No 6 0.3% low-pour NYH
Nat Gas
PA Code
Petroleum
On October 22, 2014, Argus removed a fuel oil assessment from its Argus US Products
publication and data module. Relevant codes appear in the dhp and dhps.csv files in the
DUSPR folder of server ftp.argusmedia.com.
Coal
Argus Stops Global Fuel Oil Series
USD/bl Monthly
Fuel oil 6 0.3% low-pour NYH monthly avg
PA5000191
USD/bl Quarterly
Fuel oil No 6 0.3% low-pour NYH quarterly avg
PA5000344
USD/bl Weekly
Fuel oil No 6 0.3% low-pour NYH snapshot
PA5000344
USD/bl Weekly
PA5000344
USD/bl Weekly
PA5000497
USD/bl Weekly
Fuel oil No 6 0.3% low-pour NYH weekly avg
Other
PA5000066
Weather and
Emissions
Time Stamp Price Type Unit
Finance
PA Code
Softs and
Metals
On October 17, 2014, Argus ceased publishing the following series in its Argus Global
Markets publication and data module. These series appeared in the dagm.csv files in the
DAGM folder of server ftp.argusmedia.com.

Data
Vendors
DME and INE to Collaborate on Energy Products
18
In Depth
October 2014
Market
Analysis
Effective October 20, 2014, the Shanghai International Energy Exchange Corporation
(INE) announced that it has signed a memorandum of understanding (MOU) with the
Dubai Mercantile Exchange (DME) to strengthen both companies cooperation in promoting
the development of crude oil futures.
Summary
Editorial
Power
Under the terms of this agreement, INE and DME will explore several areas of cooperation,
including joint education activities and collaboration to promote crude oil benchmarks in the
Middle East and Asia-Pacific.
Petroleum
INE plans to launch a crude oil futures contract based on the import price in China of
medium-sour crude oil. This new contract will be correlated with DMEs Oman Crude
Oil Futures contract (DME Oman), which represents the export price of crude oil from the
Middle East.

Petroleum
NYMEX Permits Block Trading for WTI Midland

and WTS Futures
Block Trade Minimum Threshold
WTI Midland (Argus) vs. WTI Trade Month Futures
5 contracts
WTI Midland (Argus) Trade Month Futures
5 contracts
WTS (Argus) vs. WTI Financial Futures
5 contracts
WTS (Argus) Financial Futures
5 contracts
Coal
Product Title
Nat Gas
On October 20, 2014, NYMEX began to permit block trading for the futures listed below.
Softs and
Metals
Finance
Weather and
Emissions
Other
Data
Vendors
Market
Analysis
19
In Depth
October 2014
Summary
Editorial
Natural Gas
Power
Petroleum
Platts Proposes Sublistings for Transco, Zone 6 Non-NY North
Other
ZEMA collects gas data on a daily basis from over 600 reports. To learn more about ZEMA, book a complimentary
demonstration today at http://www.ze.com/book-a-demo/.
Data
Vendors
Platts to Add Monthly Listing for Transco, Zone 5 Delivered

Platts will add a monthly listing to its monthly bidweek North American spot-price for
Transcontinental Gas Pipeline Corp., zone 5 delivered on January 2, 2015.
In Depth
20
Market
Analysis
Trading in the delivered monthly market in Transcos zone 5, which extends from the Georgia/
South Carolina border to the Virginia/Maryland border, is at a level that will support a robust
pricing location. Platts already publishes daily spot-gas prices for this location.
October 2014
Weather and
Emissions
Finance
There will be no change to the existing Platts listing for Transco, zone 6 non-NY, which is
composed of all non-NY delivered transactions both north and south of Station 196.
Softs and
Metals
Transco, zone 6 non-N.Y. North (daily and monthly survey): Deliveries from Transcontinental
Gas Pipe Line from Station 195 in York, Pa. to the Linden, NJ, compressor station and on
the Leidy Line south of Clinton County, Pa. The non-New York point does not include
deliveries to Public Service Electric and Gas in New Jersey, whose supply is taken
downstream of Linden.
Coal
The proposed description for the new location is:
Nat Gas
Effective January 2, 2015, Platts will add new listings for the bidweek market covering
late December bidweek trading for January delivery, and on January 5 for the daily market,
covering trade date January 2. To bring more transparency to the pricing region, Platts
proposes to add a listing for the northern portion of Transcos zone 6, non-NY, which will be
composed of only transactions delivered from Transco to markets and interconnects north of
Station 196 in York, Pennsylvania, excluding deliveries in the Leidy Hub area and to New York
city-gates downstream of Linden, NJ.
Power
Petroleum
Nat Gas
Coal
Editorial
The ZEMA graph below represents Henry Hub forward prices (Natural Gas Futures Settlements
data from CME). The graph represents data from October 21, 2014 until October 23, 2017.
Information is represented in $USD per MMbtu with a forecast date of October 21, 2014.
Nat Gas
Summary
Deliveries from Transcontinental Gas Pipe Line on the 30-inch, 36-inch, and 42-inch lines
from the Georgia/South Carolina border to the Virginia/Maryland border. Deliveries into
Transco at the Pleasant Valley receipt point near Fairfax, VA, from Dominions Cove Point LNG
terminal are not included.
Natural Gas
The new monthly location will appear in the Northeast section of the Market Center Spot
Gas Prices table in Inside FERCs Gas Market Report, Energy Trader, Gas Daily Price Guide,
and Platts Natural Gas Alert pages 433 and 495. Additionally, the new listing will appear in
the Northeast section of the Market Center Bidweek Physical Basis Prices table in Inside
FERCs Gas Market Report.
Softs and
Metals
Finance
Weather and
Emissions
Time Stamp Price Type
Unit
PA0015161
Euro/MWh Daily
Natural gas TTF Eur/MWh Gas year
PA0015161
Euro/MWh Daily
PA0015161
Euro/MWh Daily
PA0015161
Euro/MWh Daily
21
In Depth
October 2014
Market
Analysis
PA Code
Data
Vendors
On October 1, 2014, Argus added the following new series to the Argus European
Natural Gas publication and data module. These now appear in the DNG module in the DENG
folder on ftp.argusmedia.com.
Other
Argus Creates New European Natural Gas Assessments
Euro/MWh Daily
Natural gas Gaspool Eur/MWh Gas year
PA0015162
Euro/MWh Daily
PA0015162
Euro/MWh Daily
PA0015162
Euro/MWh Daily
PA0015163
Euro/MWh Daily
Natural gas NCG Eur/MWh Gas year
PA0015163
Euro/MWh Daily
PA0015163
Euro/MWh Daily
PA0015163
Euro/MWh Daily
PA0015181
Euro/MWh Daily
Natural gas TTF-Gaspool basis gas year
PA0015181
Euro/MWh Daily
Natural gas TTF-Gaspool basis gas year
PA0015182
Euro/MWh Daily
Natural gas NCG-TTF Eur/MWh basis gas year
PA0015182
Euro/MWh Daily
Natural gas NCG-TTF Eur/MWh basis gas year
Nat Gas
Petroleum
Power
PA0015162
Editorial
Unit
Summary
Natural Gas
PA Code

Coal
ZEMA collects Argus natural gas data, including data from the Argus International LPG report and the Argus LNG Daily
report. To learn more about ZEMA, book a free demonstration today at http://www.ze.com/book-a-demo/.
Softs and
Metals
Finance
Weather and
Emissions
Other
Data
Vendors
Market
Analysis
22
In Depth
October 2014
Summary
Coal
Editorial
Power
Cargo Type
Origin
Destination
50kt
Petcoke
Houston
Aliaga, Turkey
25kt
Steam coal
Yuzhny
Iskenderun, Turkey
Coal
Size
ZEMA collects over 100 coal records from other data providers. To gain more informed insight regarding Plattss new coal
assessment, view ZEMAs Platts records and coal records. To learn more, visit http://www.ze.com/the-zema-solutions/.
Keep track of updates to Illinois Basin coal using ZEMA, ZEs data management solution for coal traders. ZEMA
possesses a rich library of market data that can be transformed into relevant analysis within minutes. To learn more, visit
http://www.ze.com/the-zema-solutions/.
Data
Vendors
Other
Specifications for the assessment include coal with an average heat content of
11,500 Btu/lb, a maximum sulfur content of 3.15%, maximum ash content of 12%, and
maximum chlorine content of 0.35%, for delivery on the lower Ohio River. The price is reported
in U.S. dollars per short ton.
Weather and
Emissions
On October 20, 2014, Platts began assessing the over-the-counter price for the Illinois
Basin 11,500 Btu/lb physically-delivered coal futures contract. The assessment reflects the
daily market value as of 2:30 p.m. Eastern prevailing time for 2 front months, 3 forward
quarters, and 1 forward calendar year. It is published in Platts Coal Trader in the Daily OTC
Assessments table.
Finance
Platts Assesses OTC Price for Illinois Basin Coal Futures
Softs and
Metals
Market
Analysis
Argus Introduces Forward Swaps Series for Australian Coal

23
In Depth
On October 1, 2014, Argus introduced new forward swaps series for Australian coal fob
Newcastle 5,500 kcal for 2 months, 4 quarters, and 1 year forward.
October 2014
Nat Gas
On December 1, 2014, Platts will launch a number of new dry bulk Supramax and Handysize
freight assessments reflecting established trade routes of petcoke and steam coal from
Europe and the U.S. These assessments will be published on a dollars per metric ton basis.
Petroleum
Platts Creates New European, US Steam Coal and Petcoke

Freight Assessments
Unit
USD/t
Daily
Coal Australia 5500 fob Newcastle swaps month
PA0015144 6
USD/t
Daily
Coal Australia 5500 fob Newcastle swaps month
PA0015145 6
USD/t
Daily
PA0015145 6
USD/t
Daily
PA0015145 6
USD/t
Daily
PA0015146 6
USD/t
Daily
Power
PA0015144 6
Editorial
PA Code
Petroleum
Coal Australia 5500 fob Newcastle swaps

swaps quarters
swaps quarters
swaps quarter
swaps year
Manage coal market data with ease using ZEMAs data collection, validation, analytic, and visualization functionalities.
To learn more, book a complimentary ZEMA demonstration.
Coal
NYMEX Lists New Physically-Delivered Illinois

Basin Coal Futures
Contract Size
1,750 short tons
First Listed Delivery Month
November 2014
Listing Cycle
30 consecutive months
Termination of Trading
The 4th to last business day prior to the delivery month.
Minimum price Fluctuation
$0.01 per short ton
Value per Tick
$17.50
Block Trade Minimum Threshold
5 contracts
Data
Vendors
ILB
Other
Commodity Code
Weather and
Emissions
Chapter 255
Finance
Rule Chapter Number
ZEMA collects many reports from the Chicago Mercantile Exchange regarding Chicago Board of Trade financial
information, including the CBOT Futures daily price report. To learn more about how to transform this collected data into
useful market intelligence, visit http://www.ze.com/the-zema-suite/market-analyzer/.
In Depth
24
Market
Analysis
October 2014
Softs and
Metals
Effective October 20, 2014, NYMEX listed for trading a new physically-delivered Illinois Basin
coal futures contract (commodity code: ILB; chapter 255). This contract is available for
trading on CME Globex and the NYMEX trading floor, as well as for submission for clearing
through CME ClearPort. Details are provided below:
Illinois Basin Coal Futures
Nat Gas
Contract Title
Summary
Coal
The codes listed below were added to the dci.csv files in the DCOAL folder of server
ftp.argusmedia.com.
Summary
Coal
On October 2, 2014, the New York Mercantile Exchange (NYMEX) approved the application of
Peabody Coalsales, LLC for regularity for delivery against the NYMEX Illinois Basin coal futures
contract at the companys locations in Evansville, IN and Old Shawneetown, IL.
Editorial
The NYMEX Illinois Basin coal futures contract was listed on the Exchange for trade on October
20, 2014. It is available for block trading at a minimum threshold of 5 contracts.
Power
Petroleum
NYMEX Approves Peabody Coalsales, LLC as Terminal for

Delivery against Illinois Basin Coal Futures
Nat Gas
The ZEMA graph below displays Central Appalachian coal futures from October 21, 2014 until
October 21, 2016 with a forecast date of October 21, 2014. The data is taken from CME and
presents settlement prices in $USD per ton. Central Appalachian is considered the
benchmark for physically delivered coal futures contract in North America.
Coal
Softs and
Metals
Finance
Weather and
Emissions
Other
Data
Vendors
Market
Analysis
25
In Depth
October 2014
Summary
Editorial
Power
Softs and Metals
Petroleum
Platts to Launch UK Hot Rolled Coil Assessment
Nat Gas
On December 4, 2014, Platts will launch a weekly assessment of the U.K. hot rolled coil
steel market. The price assessment for HRC DDP UK will normalize to delivered duty paid
West Midlands and capture prime imported and domestically produced material, as well as
port stocks.
Softs and
Metals
The weekly assessment will be made on Thursdays or the closest business day in the event of
holidays, time stamped to 16:30 London time.
Coal
The assessment will normalize to 3 millimeter thick and up to 1.8 meter wide S275 hot rolled
coil. The minimum order size will be 5 mt with a maximum truckload of 25 mt. The delivery
window will be 7 days from the date of publication. Payment terms will be normalized to
net-40 days, with the assessment in GBP/mt.

Finance
The ZEMA graph below shows total raw steel production in North America in kilotons per day
from August 1, 2014 until December 1, 2015. The data is taken from the U.S. Energy
Information Administration (EIA).
Weather and
Emissions
Other
Data
Vendors
26
In Depth
October 2014
Market
Analysis
Petroleum
Nat Gas
Coal
The assessment will be published in Platts Metals Alert and Steel Markets Daily. Data-only
packages will be available on Market Data, with monthly averages also available on the
same services.
Power
The new weekly assessment will be made in U.S. dollars per mt, timing of cargoes for delivery
2-8 weeks from date of publication, with a minimum 27-30 mt container. Payment terms will
be deemed 100% payment at sight with all variations normalized to this standard. The price
assessment will reflect the close of the London markets, time stamped at 16:30, published at
the end of the week on Friday or closest business day.
Editorial
The assessment will comply with ISRI 211 classification or equivalent, specifying
homogeneous and magnetically separated iron and steel scrap originating from automobiles,
unprepared No. 1 and No. 2 steel, and miscellaneous baling and sheet scrap, with an average
density of 70 lb/square foot. Other grades of steel scrap can be normalized to ISRI 211
where appropriate.
Summary
Platts will publish from December 1, 2014 a new weekly spot price assessment for
Indian containerized ferrous shredded scrap CFR Nhava Sheva.
Softs and Metals
Platts to Publish Indian Ferrous Shredded Scrap

Softs and
Metals
ZEMA collects over 30 Platts reports and more than 70 reports about metals. To learn about the metals reports ZEMA
collects, visit http://www.ze.com/the-zema-solutions/data-coverage/.
Platts to Introduce New Dry Bulk Panamax Assessments
60,000 mt
Grain
New Orleans
Qingdao, China
60,000 mt
Grain
New Orleans
Fangcheng, South China
60,000 mt
Grain
New Orleans
Alexandria, Egypt
60,000 mt
Grain
Odessa
Dammam, Saudi Arabia
60,000 mt
Grain
Odessa
Alexandria, Egypt
70,000 mt
Iron Ore
Port Cartier
Rotterdam, Netherlands
70,000 mt
Iron Ore
Tubarao
70,000 mt
Iron Ore
Sao Luis
27
In Depth
October 2014
Market
Analysis
Destination
Data
Vendors
Origin
Other
Cargo Type
Weather and
Emissions
Size
Finance
On December 1, 2014, Platts will launch a number of new dry bulk Panamax freight.
These new assessments reflect strong market interest in trade routes from the Maritime
provinces of Canada, the U.S. East Coast, USGC, Brazil, and the Black Sea. Each assessment
is to be published on a dollars per metric ton basis. The following is a complete list of the
new assessments:
Origin
Destination
80,000 mt
Iron Ore
Tubarao
Qingdao, China
Destination
45kt
Scrap
Riga
Aliaga, Turkey
25kt
Scrap
Rotterdam
Aliaga, Turkey
45kt
Scrap
Rotterdam
Aliaga, Turkey
45kt
Scrap
New Jersey
Aliaga, Turkey
50kt
Grain
New Orleans
Kashima, Japan
50kt
Grain
New Orleans
Alexandria, Egypt
25kt
Grain
Nikolaev
Alexandria, Egypt
Softs and
Metals
Origin
Coal
Cargo Type
Nat Gas
Size
Petroleum
On December 1, 2014, Platts will launch a number of new dry bulk Supramax and Handysize
freight assessments reflecting established trade routes of grain and scrap from the U.K.
Continent, Baltic, USGC, U.S. East Coast, and Black Sea regions. These assessments will be
published on a dollars per metric ton basis.
Power
Platts to Create New Supramax, Handysize Dry

Bulk Assessments
Editorial
Summary
Cargo Type
Softs and Metals
Size

Finance
Platts Introduces eWindow Software for European

Biodiesel Barges
Weather and
Emissions
Other
On October 2, 2014, Platts launched eWindow software for its European biodiesel barges
assessment process. This has created an additional format for headlines of bids, offers, and
trades published on PBF001. A sample headline is: Platts RED FAME 0 Diff/GO (M1) FOB
ARA FE, COMPANY A bids $100.00 for 1 13:31:50.686 GMT. In the new headline structure,
the volume being bid for will be expressed in metric tons. Company short-form names may
appear instead of full company names.
Data
Vendors
ZEMA collects over 4,000 reports from more than 400 data providersusing the solution, biofuels market participants
can easily assemble a customized data warehouse that integrates with a wide range of downstream systems. To learn
Market
Analysis
28
In Depth
October 2014
Frequency
Description
PA0015191
USD/t
Weekly
Urea prilled fob Yuzhny Index
PA0015192
USD/t
Weekly
Urea granular bulk fob Egypt Index
PA0015193
USD/st Weekly
Urea granular bulk fob NOLA Index
PA0015197
USD/t
DAP fob Tampa Index
PA0015198
USD/st Weekly
DAP fob NOLA Index
PA0015199
USD/st Weekly
UAN 32 fob NOLA Index
Weekly
Coal
Unit
Nat Gas
Price Type
Petroleum
Time Stamp
Power
PA Code
Editorial
On October 17, 2014, Argus introduced The Fertilizer Index report and data feed. The
following PA code details now appear in the DFertilizerIndex module in the DFertilizerIndex
folder of server ftp.argusmedia.com. Data files will be made available weekly, every Friday
at 05:15 EST.
Summary
Softs and Metals
Argus Creates The Fertilizer Index Report and Data Feed
Finance
Argus Generates New European Steel Feedstock Assessments

Effective October 8, 2014, Argus introduced new steel feedstocks assessments. The new
codes are price type 8 and have a time stamp of 6.
PA0015183
USD/t
Daily
Ferrous scrap HMS1-2 75/25 fob Rotterdam
PA0015184
USD/t
Daily
Ferrous scrap A3 cfr Marmara
PA0015185
USD/t
Daily
Ferrous scrap A3 fob Black Sea CIS
PA0015186
USD/t
Daily
Ferrous scrap HMS1-2 80/20 cfr Turkey
Other
Unit
Weather and
Emissions
PA Code
Softs and
Metals
ZEMA, a market data management solution for agricultural industry participants, collects real-time data about
commodity prices and transforms this into sophisticated forward curve analyses. To learn more, book a complimentary
ZEMA demonstration.
Data
Vendors

To learn how many steel industry participants use ZEMA to enhance their data collection, validation, and visualization
processes, book a complimentary ZEMA demonstration.
Market
Analysis
29
In Depth
October 2014
Editorial
Power
Petroleum
The following types of metal assessments have been included:

Gadolinium
Cerium oxide
Lanthanum
Cerium oxide
Mischmetal
Neodymium
Neodymium
Yttrium oxide
Praseodymium
Cerium carbonate
Samarium
Cerium
Terbium
Dysprosium
Praseodymium-Neodymium
Europium
Ferro-dysprosium
Summary
On October 2, 2014, Argus introduced the Argus Rare Earths report and data feeds. A
series of daily assessments were added to the DRareEarths data module in the /DRareEarths
folder of server ftp.argusmedia.com.
Softs and Metals
Argus Introduces Rare Earths Report and Data Feed
Nat Gas
Coal
In addition, 2 new categories were created to accommodate this change:
Softs and
Metals
gMetalsNon-ferrousgRare EarthsgEurope
gMetalsNon-ferrousgRare EarthsgAsia-Pacific
To view a complete list of new assessments, see the original announcement.
Finance
ZEMA collects over 70 metal records. The solution can easily collect Arguss new rare earths data. To learn more about
ZEMAs data coverage, visit http://www.ze.com/the-zema-solutions/data-coverage/.
30
In Depth
October 2014
Market
Analysis
Further specifications are shown in the table on the next page:
Data
Vendors
These mini metals contracts will trade in Renminbi (RMB). The new mini metals contracts will
be traded on Hong Kong Futures Exchange Limited (HKFE) and cleared through HKFE Clearing
Corporation Limited. They are all monthly cash-settled futures contracts. The trading hours
for the new London Aluminium/Zinc/Copper Mini Futures will be 9:00 a.m. to 4:15 p.m. and
5:00 p.m. to 1:00 a.m. the next morning, Hong Kong time, Monday to Friday, excluding the
public holidays on HKExs trading calendar.
Other
On December 1, 2014, Hong Kong Exchanges and Clearing Limited (HKEx) will introduce its
first Asia commodities contractsLondon Aluminium Mini Futures, London Zinc Mini Futures,
and London Copper Mini Futures.
Weather and
Emissions
HKEx Begins First Asia Commodities Contracts for Aluminium,

Zinc, and Copper
Special High Grade Zinc

as defined in the LME
Rules and Regulations
from time to time
CopperGrade A as defined
in the LME Rules and
Regulations from time to
time
5 tonnes
Contract Months
Spot month and the next 11 calendar months (monthly contracts)
Experience sophisticated forward curve management and market analysis tools in ZEMA, ZEs risk management solution
for metals market participants. To learn more, book a complimentary ZEMA demonstration.
Nat Gas
Platts to Remove Weekly FOB China Antimony Price
Petroleum
Power
Trading and Settlement Currency RMB
Editorial
London Copper Mini Futures
Summary
Contract Size
London Zinc Mini Futures
Softs and Metals
Underlying Commodity
London Aluminium Mini

Futures
High Grade Primary
Aluminium as defined in
the LME Rules and
Regulations from time to
time
On December 31, 2014, Platts will discontinue its weekly FOB China antimony
price (MMACZ00).
Coal
Platts will remove this assessment because it notes that market participants have provided
feedback that this price is no longer representative in the industry due to a lack of liquidity
and market interest.
Softs and
Metals
Chinese exports have fallen on reduced demand, and Chinese production has decreased
significantly due to government regulations that have limited mining and exploration.
Finance
Platts to Cease Publishing IW Singapore Tim Premium
Weather and
Emissions
On December 31, 2014, Platts will discontinue publishing its daily in-warehouse
Singapore tin premium (AASJB00).
Data
Vendors
Platts will also cease publishing the daily in-warehouse Singapore fixed price equivalent for tin
(AASJC00), which is an automated price based on the current LME tin price plus the assessed
tin premium.
Other
Platts will remove this assessment because market participants claim this price is no longer
representative of active spot trade.
Market
Analysis
31
In Depth
October 2014
Argus Ceases Publishing Non-RED Assessments
Nat Gas
Some types of assessments being discontinued include:

Biodiesel FAME
Ethanol NWE
Coal
Biodiesel Palm
Biodiesel Rapeseed
Biodiesel Soya
Petroleum
Effective September 30, 2014, Argus has ceased publishing its daily and monthly
non-RED (Renewable Energy Directive) assessments. A list of data codes will stop in the Dbio
files in the DBIOFUELS folder of ftp.argusmedia.com server.
Power
Editorial
Following a period of industry feedback, Platts will discontinue publication of the daily
Kuala Lumpur tin price (MMAAY10) effective December 31, 2014. This is not a Platts
assessment, but a third party exchange price obtained from the Kuala Lumpur tin market
(KLTM) which can now be obtained from the KLTM official website.
Summary
Softs and Metals
Platts to Discontinue Daily Kuala Lumpur Tin Price
CME Globex Code/Clearing Code
NYMEX Rulebook Chapter Number
Short-Term Gold Option
L01-L31
1067
Weather and
Emissions
Product Name
Other
CME Delists 10 Options on Livestock Futures
R0A
B0A
CME 152B
Calendar Spread Options on Lean Hog Futures
R0B
B0B
CME 152B
R0C
B0C
CME 152B
October 2014
32
In Depth
Market
Analysis
Clearing Code Globex Code Rule Chapters
Data
Vendors
On September 29, 2014, the Chicago Mercantile Exchange (CME) delisted 10 options
contracts on lean hog futures. These contracts were available for trade on the CME trading
floor and on CME Globex. There was no open interest in these contracts. Related product
rules, terms, and conditions were removed from the Exchange rulebook.
Product Name
Finance
On October 6, 2014, Commodity Exchange, Inc. (COMEX) delisted the short-term gold
option contract listed below. This contract was listed for trading on the COMEX trading floor
and CME Globex; it was available for submission for clearing on CME ClearPort. There was no
open interest in this contract.
Softs and
Metals
COMEX Removes Short-Term Gold Option Contract
B0D
CME 152B
R0E
B0E
CME 152B
Live Cattle Weekly Options Wk 1
LC1
LE1
101A.D.3, 101A.E.3, 101A.I.2
LC2
LE2
101A.D.3, 101A.E.3, 101A.I.2
LC3
LE3
101A.D.3, 101A.E.3, 101A.I.2
LC4
LE4
101A.D.3, 101A.E.3, 101A.I.2
LC5
LE5
101A.D.3, 101A.E.3, 101A.I.2

Petroleum
Nat Gas
CME Removes Live Cattle Weekly Options

On September 29, 2014, CME delisted the following livestock weekly options from CME
Globex and the CME trading floor. There was no open interest in these contracts.
LC1 / LE1
LC2 / LE2
LC3 / LE3
LC4 / LE4
LC5 / LE5
Softs and
Metals
Title
Coal
Code Clearing / Globex
Finance
Effective October 8, 2014, Argus made changes to its metals categories. The current
category gMetals g Ferrous became a parent category for the following new sub-categories.
Other
New Category Structure

g Metal-Ferrous g Iron Ore
gMetals - Ferrous
Weather and
Emissions
Argus Implements Changes to Metals Codes
Current Category Structure
Power
R0D
Editorial
Summary
Clearing Code Globex Code Rule Chapters
Softs and Metals
Product Name
g Metal-Ferrous g Scrap
Data
Vendors
Market
Analysis
33
In Depth
October 2014
Description
Current Category
New Category
PA0012025
Iron ore fines cfr Qingdao 2-6 weeks - 62% Fe
gMetals-Ferrous g Metal-Ferrous g Iron Ore
PA0012026 Iron ore fines cfr Qingdao 2-6 weeks - 65% Fe
PA0013247
gMetals-Ferrous
Iron ore lump premium cfr Qingdao 2-6 weeks - 63% Fe
PA0013951 Iron ore lump cfr Qingdao 2-6 weeks - 63% Fe
Petroleum
Effective November 10, 2014, COMEX will expand the listing of contract months for the
Aluminum MW U.S. Transaction Premium (Platts) (25MT) Futures contract (Commodity Code:
AUP; Rulebook Chapter: 1189) on CME Globex.
AUP
1189
24 consecutive
months
Expanded CME Globex

Listing Schedule
Softs and
Metals
24 consecutive months
12 consecutive
(effective on trade date
months
November 3, 2014)
Finance
Aluminum MW
U.S. Transaction
Premium (Platts)
(25MT) Futures
Coal
Contract
Nat Gas
Additional CME Globex Listings for US Aluminum

Futures Contract
Unchanged CME
Current CME
Rulebook ClearPort and COMEX
Code
Globex Listing
Chapter Trading Floor Listing
Schedule
Schedule
Power
gMetals-Ferrous g Metal-Ferrousg Iron Ore
Editorial
PA0012024 Iron ore fines cfr Qingdao 2-6 weeks - 58% Fe
Summary
PA Code
Softs and Metals
As a result, the categories of the following codes were amended.
Weather and
Emissions
Other
Data
Vendors
Market
Analysis
34
In Depth
October 2014
INR 400,000
Trading Currency
Euro (EUR)
Settlement Currency
U.S. Dollars (USD)
Contract Symbol
DINRGBP
Underlying
Indian Rupee (INR)
Contract Size
INR 400,000
Trading Currency
Pound Sterling (GBP)
Settlement Currency
U.S. Dollars (USD)
Coal
Contract Size
Nat Gas
Indian Rupee (INR)
Petroleum
Underlying
Power
DINREUR
Editorial
Contract Symbol
Summary
On October 24, 2014, the Dubai Gold & Commodities Exchange (DGCX) introduced new cash
settled Mini INR-EUR and INR-GBP cross-currency contracts. The first contract available for
trading is the November 2014 contract. Further information is included below.
Finance
DGCX Introduces New Mini INR-EUR and INR-GBP Cross

Currency Contracts
The ZEMA graph below represents exchanges rates for $USD per EUR from
October 19, 2009 until October 17, 2014. The graph is based on data from the Bank of Canada.
Softs and
Metals
Finance
Weather and
Emissions
Other
Data
Vendors
Market
Analysis
35
In Depth
October 2014
Editorial
On October 17, 2014, DGCX introduced the following new cash settled MSCI India
Index contracts.
Summary
Finance
DGCX Creates New Cash Settled MSCI India Index Contracts
Contract Symbol DMSI
US$ 25 x Index Value
Price Quote
Index Value quoted in USD
Contract Months
3 consecutive serial months, 1 quarterly month, and 1 calendar spread between

the 1st and 2nd month
Petroleum
Contract Size
Power
Underlying Index MSCI India (INR, PRICE)
Contract Symbol DMSU

Nat Gas
Underlying Index MSCI INDIA (USD, NTR)

US$ 50 x Index Value
Price Quote
Index Value quoted in USD
Contract Months
3 consecutive serial months, 4 quarterly months, and 2 calendar spread between

the 1st and 2nd month
Coal
Contract Size

Softs and
Metals
Keep track of index contracts for emerging markets using ZEMA, ZEs data management solution for analysts, traders,
and risk managers. To learn more, visit http://www.ze.com/the-zema-solutions/.
Finance
Euronext Lists First Trust Eurozone AlphaDEX UCITS ETF
Weather and
Emissions
On October 22, 2014, Euronext added First Trust Global Portfolios Ltd. as a new product
issuer to its markets. First Trust Global Portfolios listed its new ETF on Euronext Amsterdam,
providing investors efficient exposure to stocks from the Eurozone. It is the first so called
multi-factor Eurozone ETF in Europe (physical based), implying the ETF uses an investment
strategy in which securities are selected based on fundamental factors instead of on size
(market capitalization).
Other
The new ETF, the First Trust Eurozone AlphaDEX UCITS ETF, allows investors to participate in
the Nasdaq AlphaDEX Eurozone Index; it aims to mirror its returns, by investing in stocks of
companies as per their weightings in the index.
Data
Vendors

ZEMA currently collects over 30 Euronext reports. To learn more about ZEMAs repository of Euronext data, visit
http://www.ze.com/the-zema-solutions/data-coverage/.
Market
Analysis
36
In Depth
October 2014
Power
Petroleum
These ETFs provide investors with international diversification across North America, the
developed world, and developed Europe, excluding the U.K. Euronext noted in its related press
release that these ETFs will enable investors to construct a more diversified equity portfolio.
Nat Gas
Euronext to Expand Product Offering By Listing 12 New

ComStage ETFs
Markit and Hang Seng Indexes Introduce iBoxx Offshore RMB

Bond Index Family
Other
Data
Vendors
On October 20, 2014, Markit and Hang Seng Indexes Company Limited (Hang Seng Indexes)
announced the launch of the Hang Seng Markit iBoxx Offshore RMB Bond Index family (HSM
iBoxx). This bond index series tracks the performance of offshore renminbi (RMB) sovereign
and corporate debt using a methodology for the treatment of unrated bonds alongside
comprehensive breakdowns by bond tenor and rating. The indices are underpinned by
Markits independent bond-pricing service, which is based on a broad set of bond prices
received throughout the trading day from market participants.
Weather and
Emissions
ZEMAs sophisticated market data management tools collect information from more than 4,000 data reports, including
reports about ETFs. To learn how you can begin building your own warehouse of equities data, book a complimentary
ZEMA demonstration.
Finance
Softs and
Metals
The new ETFs are being added to the 2 ETFs already listed in Lisbon on the PSI20 and PSI20
Leverage indexes, and have the following underlying indexes: DAX, Short DAX, CAC 40, CAC
40 Leverage, CAC 40 Short, Dow Jones Ind. Average, S&P 500, Nasdaq 100, Nikkei 225,
MSCI World, MSCI Emerging Markets, and DJ Euro Stoxx 50. The new ETFs are in compliance
with the OICVM/UCITS IV directives.
Coal
On October 9, 2014, Euronext announced that it is expanding its ETF offering by listing 12 new
ComStage ETFs on the Lisbon market.
Market
Analysis
The HSM iBoxx methodology reflects characteristics of the offshore RMB bond market,
according to feedback from more than 15 asset managers and banks. Key features of the
index family include:
37
In Depth
October 2014
Editorial
On October 16, 2014, Euronext added three new ETFs issued by Vanguard: the Vanguard
FTSE North America UCITS ETF, the Vanguard FTSE Developed Europe ex-UK UCITS ETF, and
Vanguard FTSE Developed World UCITS ETF.
Summary
Finance
Vanguard Adds FTSE North America UCITS, FTSE Developed

Europe ex-UK UCITS, and FTSE Developed World UCITS
ETFs to Euronext
Editorial
Power
A comprehensive breakdown of the bond universe based on tenor, credit quality, sector,
and size.
Nat Gas
End-of-day closing values for the HSM iBoxx are disseminated once a day. The index family is
calculated from Monday-Friday.
Petroleum
The HSM iBoxx includes more than 600 indices covering sovereign, sub-sovereign, and
corporate debt issuers across sectors, ratings, and maturity segments. The combined total
debt tracked through the index family is about RMB300 billion. Approximately 67% of the
non-sovereign debt included in the indices carries investment grade ratings, and 13% have a
high yield rating, while 20% of the bonds are not rated.
Coal
Nasdaq Lists BlackRock iShares Commodities

Select Strategy ETF
Market
Analysis
In Depth
38
Data
Vendors
ZEMA, ZEs enterprise data management solution, contains advanced display functionalities which enable users to easily
align news updates from organizations such as NASDAQ OMX next to market data, which gives users an enhanced market perspective. For further information, visit http://www.ze.com/the-zema-suite/dashboard/.
Other
Weather and
Emissions
The fund manager uses a roll methodology designed to minimize the negative return impact
of contango, a term structure of the futures curve where the future price is above the expected
future spot price. Additionally, the ETF structure of COMT alleviates the need for investors to
file a K-1 at tax time.
Finance
Effective October 16, 2014, BlackRock, Inc. listed a new ETF, iShares Commodities Select
Strategy ETF (symbol: COMT), on the Nasdaq Stock Market. COMT is innovatively structured to
provide cost-effective, simple access to a diversified mix of commodities through futures and
commodity-related companies. The fund is intended to be an all-in-one commodity solution
by providing comprehensive commodity exposure in a smarter, more efficient way through
both futures and equities; removing a tax barrier that may have kept investors away from
commodities and utilizing a roll methodology that seeks to improve returns.
Softs and
Metals
Manage financial market data with ease using ZEMAs data collection, validation, analytic, and visualization functionalities. To learn more, book a complimentary ZEMA demonstration.
October 2014
Summary
The incorporation of bonds in the index family until maturity. This reflects the short-term
structure of many issues in the offshore RMB market, with a typical maturity of three years.
Finance
A specific methodology to handle the treatment of unrated bonds, which currently account
for up to a third of the index constituents. This allows investors to include unrated bonds in
their analysis of the investment grade and high yield portions of the market.
Petroleum
Nat Gas
NASDAQ OMX Lists the Arrow DWA Tactical ETF
Coal
On October 1, 2014, NASDAQ OMX introduced a new ETF from Arrow Funds, the Arrow
DWA Tactical ETF (symbol: DWAT), on the NASDAQ Stock Market.
Softs and
Metals
DWAT is an actively managed ETF that is based on the Dorsey Wright Relative Strength (RS)
Global Macro Model. The fund seeks to systematically identify and provide exposure to
leading global market strategies across U.S. equities, international equities, fixed income,
commodities, and currencies.
Experience sophisticated forward curve management and market analysis tools in ZEMA, ZEs risk management solution
for financial market participants. To learn more, book a complimentary ZEMA demonstration.
Weather and
Emissions
NASDAQ OMX Introduces Compass EMP Developed 500

Enhanced Volatility Weighted Index ETF
Finance
Other
On October 1, 2014, NASDAQ OMX listed a new ETF from Compass EMP, the Compass EMP
Developed 500 Enhanced Volatility Weighted Index ETF (symbol: CIZ), on the NASDAQ
Stock Market.
Market
Analysis
In Depth
39
Data
Vendors
CIZ seeks investment results that correspond generally to the price and yield performance,
before fees and expenses, of the CEMP International 500 Long/Cash Volatility Weighted
Index (the Index). The Index is a passive index and generally consists of the common stock
of the 500 largest companies by market capitalization that have their headquarters in a
developed country (excluding the U.S. and emerging markets) and the stock of which trades
on an exchange in a developed country (other than the U.S. and emerging markets). The Index
October 2014
Power
Editorial
VBND is a fixed income strategy that seeks to track the performance of the Vident Core U.S.
Bond Strategy Index (Bloomberg symbol VBNDX). This rules-based strategy index is designed
to try to diversify some of the risks (credit, inflation, counter-party, and star-manager)
associated with fixed income strategies through the use of time-tested economic and
investment principles. The fund aims to improve corporate bond exposure by including
companies Vident believes to have stronger leadership, governance, and
creditworthiness characteristics.
Summary
Nasdaq announced on October 16, 2014 that Vident Financial, LLC listed a new ETF,
Vident Core U.S. Bond Strategy ETF (symbol: VBND), on the Nasdaq Stock Market. VBND has
been trading since October 16, 2014.
Finance
Nasdaq Adds Vident Core U.S. Bond Strategy ETF
Finance market participants can easily align derivatives data alongside news updates in ZEMAs dashboard reporting
tool to gain an enhanced market perspective. To learn more, book a complimentary ZEMA demonstration.
Power
Bloomberg Tradebook Unveils Electronic Request for Quote

Service for ETFs
Petroleum
On October 15, 2014, Bloomberg Tradebook revealed its electronic request for quote (RFQ)
service for ETFs, which enables traders to anonymously access liquidity from buy-side ETF
liquidity providers in the U.S. and Europe.
Nat Gas
In its related press release, Bloomberg noted that despite the rapid growth in assets under
management held in ETFs, average daily exchange-traded volumes now appear to be in
decline. As ETFs are increasingly traded off-exchange, sourcing ETF liquidity has become a
greater challenge. The Bloomberg Tradebook RFQ platform helps investors to find block
liquidity in more than 1,500 ETF products, including specialized or smaller ETF securities,
from buy-side firms who are increasingly serving as sources of liquidity in the global ETF
market place.
Coal
ZEMA collects Bloomberg financial records that contain key data on North American equities, indexes, and currency. To
learn more about ZEMAs data coverage, visit http://www.ze.com/the-zema-solutions/data-coverage/.
Other
The quality-based strategy is used for the iShares MSCI World Quality Factor UCITS ETF. The
selection of stock corporations is based on 3 factors intended to reflect the earnings quality:
dividend yields, low debt, and stable earnings power. The reference index currently contains
301 companies from 23 industrialized nations.
Weather and
Emissions
Effective October 13, 2014, 4 new iShares equity index ETFs from BlackRocks
product offering were made tradable in Deutsche Brses XTF segment on Xetra. All iShares
ETFs track the performance of stock corporations included in the MSCI World Index. Selection
and weighting of the stocks differ depending on the selected strategy approach according to
the company size, company value, momentum, and earnings quality.
Finance
4 New BlackRock iShares ETFs Launched on Xetra
Softs and
Metals
Data
Vendors
Market
Analysis
The iShares MSCI World Momentum Factor UCITS ETF is based on the momentum strategy.
Momentum measures the strength of a share price movement. This approach selects
companies with high momentum. These are currently 349 companies from
23 industrialized nations.
40
In Depth
The iShares MSCI World Value Factor UCITS ETF provides investors with access to the
value-based investment strategy. With this strategy, stock corporations are selected on the
October 2014
Editorial
Summary
Finance
includes only those companies with consistent positive earnings (at least its 4 most recent
quarters) and is weighted based on the volatility of each stock.
Editorial
Power
See the original announcement for more details.
Petroleum
iShares MSCI France UCITS ETF Launched on Xetra

Effective September 30, 2014, a new equity index issued by iShares became available
for trade in the XTF segment of Xetra. This ETF iShares MSCI France UCITS ETFcomprises
73 stocks and represents around 85% of French market capitalization.
Equity Index ETF
ISIN
DE000A12A4K6
Total Expense Ratio
0.25%
Distribution Policy
Non-distributing
Benchmark
MSCI France Index
Softs and
Metals
Asset Class
Coal
iShares MSCI France UCITS ETF
Nat Gas
ETF Name
Data
Vendors
This marked the first phase of the Liffe transition to the ICE Futures Europe platform and
follows the transition of the Liffe U.S. products to the ICE platform in June. The following
contracts were transitioned on:
Other
On October 1, 2014, ICE announced that it had successfully completed the transition of the
Liffe London soft commodity futures and options contracts to ICE Futures Europe. These
products are now listed on the ICE trading platform, which is also home to the ICE Futures U.S.
soft commodity futures and options that include Sugar 11, Cocoa, Coffee, Cotton, and Frozen
Concentrated Orange Juice contracts. This means that global soft commodities contracts are
available for trading side by side on the same platform.
Weather and
Emissions
ICE Completes First Phase of Liffe Transition to

ICE Futures Europe
Finance
ZEMA collects over 300 financial market records. ZEMA can collect data from any provider worldwide, including Xetra. To
learn how ZEMA can help you aggregate ETF data, visit http://www.ze.com/the-zema-solutions/.
Market
Analysis
September 29, 2014:

The remaining Liffe contracts including interest rate and equity derivatives are expected to
transition to ICE Futures Europe in 4 tranches on the following dates:
41
In Depth
October 2014
Summary
The iShares MSCI World Size Factor UCITS ETF contains equally weighted mid-cap stock
corporations selected from the MSCI World Index. These are currently 885 stock corporations
from 23 industrialized nations.
Finance
basis of 3 factors: price-earnings ratio, price-to-book ratio, and ratio of company value to
operating income (cash flow). The reference index currently contains 300 stock corporations
from 23 industrialized nations.
Power
Petroleum
Short, Medium and Long Spanish

Government Bond (Bonos) Futures
Medium and Long Swiss Confederation
Bond Futures
Euro Swapnote Futures and Options
Sterling Swapnote Futures
U.S. Dollar Swapnote Futures
Swiss Franc Swapnote Futures
Nat Gas
October 20, 2014 - Fixed Income Contracts:

Three Month Sterling Futures and Options Three Month Euro (Euribor) Futures and
Options
Three Month Sterling Mid-curve Options
Three Month Euro (Euribor)
Long Gilt Futures and Options
Mid-curve Options
Ultra Long Gilt Futures
Three Month Eonia Swap Index Futures
November 3, 2014 - Fixed Income
Contracts:
Coal
Softs and
Metals
Finance
November 17, 2014 Equity Derivatives Contracts:

Index Futures and Options
Dividend Adjusted Single Stock Futures
Single Stock Futures
Individual Equity Options
Weather and
Emissions

ZEMA collects many ICE reports. To learn more about how ZEMA can collect, aggregate, and analyze data, book a
complimentary ZEMA demonstration now at http://www.ze.com/book-a-demo/.
In Depth
42
Market
Analysis
With this addition, the platform now has 37 different tools to choose from. Colombian
investors can access, in local currency and without opening a foreign account, products
issued by other exchanges, including the stock of large companies like Apple, Citigroup, Bank
of America, Pfizer, Microsoft, Exxon, Amazon, Facebook, and McDonalds, as well as 15 ETFs
that provide better exposure to the international market.
Data
Vendors
On September 4, 2014, Bolsa de Valores de Colombia (BVC) announced that, due to the
sponsorship of the Serfinco Brokerage Firm, the Colombian Securities Exchange has launched
12 new ETFs.
Other
Colombian Global Market Launches ETFs and Becomes an

Investment Option

October 2014
Editorial
October 6, 2014 - Fixed Income Contracts:

Three Month Euroswiss Futures
and Options
One Month Eonia Futures
Short and Medium Gilt Futures
Short, Medium, Long and Ultra Long
Bund Futures
Short, Medium and Long Italian
Government Bond (BTP) Futures
Summary
White Sugar Futures and Options

UK Feed Wheat Futures and Options
Finance
London Cocoa Futures and Options

Robusta Coffee Futures and Options
Power
On October 6, 2014, the Chicago Mercantile Exchange (CME) delisted the following stock
index futures on options on stock index futures contracts:
Editorial
CME Removes Several Stock Index Futures on Options for

Standard and Poors
Summary
Finance
Keep track of developing markets using ZEMA, ZEs data management tool for traders, analysts, and risk managers.
ZEMA collects more than 4,000 reports from over 400 providers, ensuring you have the information you need to make
business-critical decisions. To learn more, visit http://www.ze.com/the-zema-solutions/.
CME Rulebook Chapter Commodity Code
Euro Denominated E-Mini Standard and Poors 500 Stock

Price Index Futures
358B
EME
Stock Price Index Futures Options on Standard and Poors
353A
MD
Midcap 400 Stock Price Index Futures Options on S&P 500/Growth

Index Futures
355A
SG
Options on S&P 500/Value Index Futures
356A
SU
Petroleum
Product Title
Nat Gas

Coal
CME Delists Several Standard & Poors GSCI Commodity

Index Contracts
CME Rule Chapter
Options on S&P GSCI Commodity Index Futures (DCM)
GI
401A
S&P GSCI Gold Excess Return Index Swaps (Cleared OTC) (DCO)
GDI
415C
S&P SGCI Crude Oil Express Return Index Swaps (Cleared OTC) (DCO)
GCO
415D
Weather and
Emissions
Clearing Code
Finance
Product Title
Softs and
Metals
On September 29, 2014, CME delisted the following Standard & Poors GSCI Commodity
Index contracts. There was no open interest in these contracts. Related options on these
contracts were delisted from the CME trading floor and CME ClearPort.
CBOT Rulebook Chapter Commodity Codes
CBOT Dow Jones Industrial Average Index Futures ($25 Multiplier)
28
DD DO=Clearing
October 2014
43
In Depth
Market
Analysis
Product Title
Data
Vendors
On October 6, 2014, the Board of Trade of the City of Chicago, Inc. (CBOT) removed from
trading the previously listed contract months beyond the December 2014 contract month for
the Dow Jones Industrial Average Index Futures ($25 Multiplier) contract. The last contract
month available for trading and clearing is December 2014. This contract was available on
CME Globex and CME ClearPort.
Other
CBOT Removes Dow Jones Industrial Average Index Futures
Power
Petroleum
Euronext Opens Dutch and Belgian Equity Options Markets to

US Investors
Nat Gas
On October 7, 2014, Euronext announced that, after consulting with the U.S. Securities and
Exchange Commission, it has received new class no-action relief for foreign options markets
that enables it to offer Dutch and Belgian equity options to select U.S. investors. The
no-action relief applies to many equity and equity index options.
Softs and
Metals
BVMF and China Financial Futures Exchange Sign MOU
Finance
On September 25, 2014, BM&FBOVESPA (BVMF) and China Financial Futures Exchange
(CFFEX) announced that they have signed a memorandum of understanding (MOU) to
enhance mutual understanding, promote bilateral support, and facilitate mutual
development. The main scope of the MOU covers information sharing, high-level dialogue,
training, staff exchange, and business cooperation.
Weather and
Emissions
Amendments to CME Cleared OTC Foreign Exchange Contracts
Other
Effective October 20, 2014, CME amended contracts for 7 OTC currency pairs. These FX
contracts are listed for submission for clearing through CME ClearPort:
Rulebook Chapter Contract Name
279H
Cleared OTC USD/INR Spot, F Forwards and Swaps (Commodity Code: USDINR)
280H
Cleared OTC USD/MYR Spot, F Forwards and Swaps (Commodity Code: USDMYR)
281H
Cleared OTC USD/IDR Spot, F Forwards and Swaps (Commodity Code: USDIDR)
282H
Cleared OTC USD/TWD Spot, F Forwards and Swaps (Commodity Code: USDTWD)
283H
Cleared OTC USD/PHP Spot, F Forwards and Swaps (Commodity Code: USDPHP)
44
In Depth
October 2014
Market
Analysis
Cleared OTC USD/KRW Spot, F Forwards and Swaps (Commodity Code: USDKRW)
Data
Vendors
271H
Coal
As well, an agreement has been reached regarding an extension to the current arrangements
on equity option contracts available for trading on Euronext Paris.
Cleared OTC USD/RMB Spot, F Forwards and Swaps (Commodity Code: USDCNY)
Editorial
270H
Summary
On October 7, 2014, Intercontinental Exchange acquired SuperDerivatives, a provider of risk

management analytics, financial market data, and valuation services. The acquisition was an
all-cash transaction of approximately $350 million.
Finance
Intercontinental Exchange Completes Acquisition of

SuperDerivatives
Power
Petroleum
Bourse de Montreal Inc. Amends Rule Six for 10 Classes of

Equity and ETF Options
Editorial
ZEMA collects many reports from the Chicago Mercantile Exchange regarding Chicago Board of Trade financial
information, including the CBOT Futures daily price report. To learn more about how to transform this collected data into
useful market intelligence, visit http://www.ze.com/the-zema-suite/market-analyzer/.
Summary
Finance
CME amended rules for USD/RMB and the USD/KRW Cleared OTC Spots, Forwards, and
Swaps to remove an outdated interpretation reference regarding fallback procedures.
Further, CME will work with EMTA and other OTC organizations to make sure CME is aligned in
the event a rate is not determined or published.
Bourse de Montreal Inc. (the Bourse) will introduce new weekly options on
December 4, 2014.
Nat Gas
The option classes for weekly options to be listed are as follows:

Coal
ZEMA presently collects several Bourse de Montral financial futures and options data reports. To learn more about
ZEMAs Bourse de Montral data repository, visit http://www.ze.com/the-zema-solutions/data-coverage/.
Softs and
Metals
Finance
Weather and
Emissions
Other
Data
Vendors
Market
Analysis
45
In Depth
October 2014
USC /
Daily
USG
California Carbon Allowance - premium

CARBOB gasoline winter month
PA0015175 21
USC /
Daily
USG
California Carbon Allowance-midgrade

PA0015174 21
USC /
Daily
USG
California Carbon Allowance-regular

Coal
Nat Gas
PA0015176 21
Softs and
Metals

ZEMA is an ideal solution for traders and analysts in the environmental products industry, as the softwares data
visualization and dashboard reporting functionalities help users gain an enhanced market-wide perspective. To learn
Finance
NOAAs Weather Forecasts Go Hyper Local with NextGeneration Weather Model
Weather and
Emissions
As of September 30, 2014, the National Oceanic and Atmospheric Administration are using a
new model that will help improve forecasts and severe weather events. Thanks to the HighResolution Rapid Refresh (HRRR) model, forecasters will be able to pinpoint neighborhoods
under threat of tornadoes and hail. This will help forecasters to provide more information to air
traffic managers and pilots about hazards such as air turbulence and thunderstorms.
In Depth
46
Market
Analysis
ZEMA collects weather data from NOAA. To learn more about ZEMAs data coverage, visit
http://www.ze.com/the-zema-solutions/data-coverage/.
Data
Vendors
Other
Developed over the last 5 years by researchers at NOAA, the HRRR model forecasts are run
in high resolution every hour using the most recent observations with forecasts extending out
15 hours, allowing forecasters to better monitor rapidly evolving localized storms. The HRRRs
spatial resolution is 4 times finer than what is currently used in hourly updated NOAA models,
offering enhanced precision of storm structures. Using the a 3-D picture of the atmosphere
1 hour before the forecast, the HRR models hourly output includes snapshots taken in
15 minute intervals of the atmosphere.
October 2014
Petroleum
Power
Time Price
Unit
Stamp Type
Editorial
PA Code
Summary
On October 1, 2014, Argus added several new assessments to its US West Coast
Products publication. Relevant information was added to the data files in the duswcprod data
files in the /DUSWCPROD folder of server ftp.argusmedia.com.
Weather and Emissions
Argus Adds New California CO2 Assessments
Power
ZEMA, ZEs enterprise data management solution, contains advanced display functionalities which enable users to easily
align updates from organizations such as Bloomberg next to energy and commodities data. For further information, visit
http://www.ze.com/the-zema-suite/dashboard/.
Petroleum
IHS Chemical Offers Industry Data Room for Assessment of the

Dow Chemical Transaction Related to its Chlorine Value Chain
Nat Gas
Editorial
Users of the site will be able to search through content and download a wide range of formats
and file types.
Summary
On October 13, 2014, Bloomberg announced the launch of Media Source, a new online
platform that helps users access Bloombergs media. Media Source hosts Bloombergs library
of photos, video footage, short video clips, and full-length shows, all of which are updated
throughout the day and can be accessed from www.mediasource.bloomberg.com.
Other
Bloomberg Launches New Content Platform, Media Source
Softs and
Metals
Finance
Weather and
Emissions
Other
The scope of the Dow Chemical assets being offered for sale includes approximately
40 manufacturing facilities at 11 sites worldwide. According to company statements from
Dow, this carve-out represents a continuation of Dows shift toward focusing on its
downstream higher-margin products. The research information contained in the data room
offers in-depth info related to Dow Chemical and the industries customers and competitors.
This information includes: end-use markets, demand volumes, supply capacities, trade,
costs, process technologies, capital and manufacturing costs, manufacturing locations, and
chemical product and site integration. The data room provides product coverage for chlorine,
caustic soda, ethylene dichloride/vinyl chloride monomer (EDC/VCM0, chlorinated organics,
epoxy resins and precursors, as well as the major downstream product polyvinyl
chloride (PVC).
Coal
Dow Chemicals announcement that it plans to divest a significant portion of businesses that
comprise its chlorine value chain has led IHS Chemical to offer an industry advisory data
room. Reports and analysis contained in the room give clients a quick opportunity to assess
their interest in Dows assets. Access to the service is provided on a weekly fee basis where
clients will be able to access the electronic data room immediately after registration. IHSs
announcement was made on October 6, 2014.
Data
Vendors
Market
Analysis
47
In Depth
October 2014
Editorial
Power
Directory of Chemical Producer (DCP) Reports

Competitive Cost and Margin
Analytics (CCMA)
The Dow Chemical Company Analysis
(CCA) Report
Capacity and Integration Reports
Process Economics Program (PEP) Report
Summary
World Analyses Reports

(for the relevant chemicals involved in the
proposed transactions
Chemical Economics Handbook
(CEH) Reports
Specialty Chemicals Update
(SCUP) Reports
Other
Further, the HIS data room offers research from IHS Chemicals insight research library including:
Petroleum

ZEMA collects over 50 NASDAQ OMX reports, including financial market reports. ZEMA also contains a wide range of
global bond information, such as IHS Global Insights Bond Buyer Spot report. For further information, visit
http://www.ze.com/the-zema-solutions/.
Nat Gas
CBOT to Amend the Listing Cycle of the Urea (Prilled) FOB

Yuzhny Swaps (Clearing Only) Contract
Coal
On November 3, 2014, CBOT amended the listing cycle for the Urea (Prilled) FOB Yuzhny
Swaps (Clearing Only) from the current 12 consecutive calendar month listing to
6 consecutive calendar month listings.
Softs and
Metals
Finance
Weather and
Emissions
Other
Data
Vendors
Market
Analysis
48
In Depth
October 2014
Summary
Editorial
Power
Petroleum
Nat Gas
Coal
ZEMA and FutureSource for Front, Middle, and Back Offices
The ability to gather data from

any commodity.
Information from public, proprietary, and
third-party sources.
Data
Vendors
Access to information from brokers, power

pools, exchanges, financial firms, weather
sites, regulatory agencies, and publishers.
Data from internally sourced locations.
Real-time data collection capabilities.
Market
Analysis
ZEMAs Curve Functionality
49
In Depth
ZEMA is designed to help clients automate their curve creation processes. Using a wide range
of input data, formulas, and functions, individuals can leverage ZEMAs unmatched strength
October 2014
Other
ZEMA fully automates the import and centralization of energy and commodities market data in
any format, from any source, and at any frequency. ZEMAs library of over 4,000 reports from
more than 400 providers is unmatched and accessible from FutureSource terminals. More
features of ZEMA include:
Weather and
Emissions
ZEMAs Data Catalogue
Finance
Through this integration, users get the best of both softwares: they can visualize and analyze
data from hundreds of brokers, exchanges, ISOs, news and weather services, and other content providers across the globe. The ZEMA-FutureSource solution suits the needs of all market
participants, regardless of their industry.
Softs and
Metals
ZE PowerGroup Inc. (ZE) and Interactive Data Corporation (IDCO) have made it easier than
ever before to access data and analyses by making ZEMAs massive data and curve library
available in IDCOs FutureSource terminals.
Nat Gas
This integration supports the creation of historical implied volatilities, skews, indicators,
what-if calculators for portfolio management, and continuation and chartable expressions.
Traders, brokers, and analysts can create and save custom templates and pre-developed
layouts so analyses can be retrieved quickly in the event of rapid changes to markets
and conditions.
Coal
ZEMA and FutureSource can easily meet the needs of front, middle, and back offices.
Softs and
Metals
The benefits of the ZEMA-FutureSource solution will be highlighted further in a co-hosted

webinar on November 13, 2014. For more information and registration details, click here.
ZEMA Equips Users to Better Integrate Curves with Downstream

ETRM Systems
Other
Data
Vendors
Maintain a log of the duration of curve

creation and exports.
Sort the ZEMA curve database by
user-specified properties.
In Depth
50
Market
Analysis
With these changes, users gain the ability to record curve and adapter build durations in a log.
Analysts using ZEMA often build as many as tens of thousands of curves, so automated
notifications help them manage their computational resources more efficiently.
October 2014
Weather and
Emissions
Recently, ZE has updated ZEMAs curve management tool in response to its clients need to
streamline integration processes between ZEMA analyses and ETRM systems. Now, using the
newly updated solution, clients will be able to:
Finance
ZE PowerGroup Inc.s (ZEs) ZEMA solution features a fully-integrated tool that allows for the
persistence of user-created analyses to downstream systems. Analyses may include forward
curves or time-series data in a range of formats and granularities, such as information about
derivatives, weather and temperature fluctuations, or market pricing for commodities.
Export and import external curves.

Use external curves with a new integration
capability through Microsoft Excel.
Petroleum
Do More with ZEMA and FutureSource
Power
Users can build thousands of curves every day, and ZEMA can feed those curves to any
target system.
Editorial
Simple or highly sophisticated curve logic.

Real-time curve creation functionalities.
Summary
ZEMAs internal curve library.

Trader marks entered into ZEMA.
in curve development to create secure and auditable curves that can be viewed in
FutureSource. Moreover, internal trader marks that are uploaded to ZEMA are also available in
FutureSource. Through the ZEMA-FutureSource solution, market participants gain access to:
Nat Gas
Imports of Crude Oil and Total Products by PAD District
EIA
Refiner and Blender Net Production
EIA
Stocks of Crude Oil by PADD, & U.S. Stocks of Petroleum Product
EIA
U.S. Petroleum Balance Sheet
EIA
U.S. Retail Motor Gasoline & On-Highway Diesel Prices (Monthly)
EIA
U.S. Retail Motor Gasoline & On-Highway Diesel Prices (Weekly)
EIA
U.S. and PAD District Weekly Estimates
EIA
Weekly Preliminary Crude Imports by Top 10 Countries of Origin
ERCOT Nodal
DAM PTP Obligation Bid Awards
ERCOT Nodal
Hourly Resource Outage Capacity
EVO
Nuclear Fuel Markets Update
51
In Depth
October 2014
Market
Analysis
EIA
Data
Vendors
US Steel Price Assessment
Other
CRU
Weather and
Emissions
Gas Flow and Capacity (RR Codes)
Finance
Bentek
Softs and
Metals
Electricity Implied Volatility Forward Curve
Coal
We have added several new data reports to ZEMA following the publication of our September
issue of ZE DataWatch:
Argus
Petroleum
At ZE, we are continuously working to expand our data coverage, as we provide our clients with
data essential to their operations. Our highly flexible data parses can collect information in
any electronic format, from any source, and at a frequency clients need.
Report
Power
New Data Reports from ZEMA
Data Source
Editorial
For more information on the ZEMA solution, click here.

For more information on ZEMA, or to book a complimentary demo, click here.
Summary
ZE has been voted Data Management House of the Year in the Energy Risk software survey
for 5 years in a row (2009-2013). In the same survey, ZEMA won awards in the Ease of
Integrating with Other Systems category for 5 years in a row as well. The solution, which is
used by Fortune 500 companies, sets a new industry standard for integration.
In addition, ZEMAs new filtering properties help users view curves alongside other curves with
similar properties. This allows them to group like curves with ease.
ERCOT Options
Mysteel
Shanghai Rebar Daily Price Index
NET4GAS
Allocation Entry/Exit
PRT
CAISO Load Forecast
PRT
CAISO Temperature Forecast
Polish Power Exchange
Actual Generation
Actual Load
Actual Wind Generation
Urgent Market Messages (UMM)
Planned Cross-Border Exchange
Planned Load
SMHI
Hourly Forecasts
SSY
Coking Coal Data - Futures
SSY
Coking Coal Data - Spot
SSY
Iron Ore Options Volatility
SSY
Steel Data - Futures
SSY
Steel Data - Spot
Socius Group
Iron Ore Settlement
TFS
Bitumen M2M
US Grains Council
Market Perspectives - FOB
USDA
NASS: Crop Statistics (Annual)
USDA
NASS: Crop Statistics (Daily)
USDA
NASS: Crop Statistics (Monthly)
USDA
NASS: Crop Statistics (Weekly)
Uranium Markets
Uranium
Ux Consulting
Nuclear Fuel Price Indicators
52
In Depth
October 2014
Market
Analysis
IVG
Data
Vendors
Power Volatility
Other
ICAP
Weather and
Emissions
Iron Ore Daily Settlement
Finance
GFI
Softs and
Metals
Singapore Iron Ore Swaps
Coal
FIS
Nat Gas
London Iron Ore Swaps - Spot
Petroleum
FIS
Power
London Iron Ore Swaps - Futures
Editorial
FIS
Summary
Report
Data Source
Biofuels: the publication of a full range of

US physical and financial ethanol curves
on a daily basis.
Softs and
Metals
Naphtha: the publication of global swap

price curves three times a day.
Coal
Gas Oil: the addition of Med swap price

curves to our European distillates data
service.
Nat Gas
LPG: the publication of global swap price

curves three times a day.
Petroleum
Fuel Oil: the addition of a comprehensive

range of EOD curves for the US markets,
making Marex Spectrons coverage of fuel
oil markets truly global.
Power
Iron Ore: the introduction of a half-hourly

full curve update for the iron ore market,
providing a set of consistent and regular
data points throughout the day.
Editorial
A summary of the key innovations is given below:
Summary
October 23, 2014: Marex Spectron Group (Marex Spectron), the global commodities and financial markets brokerage, is pleased to announce it has expanded its market data coverage
in a number of energy and commodity market sectors, including fuel oil, gas oil, iron ore, LPG,
naphtha and biofuels.
Marex Spectron Launches Major Expansion of Data Coverage
Finance
We are delighted to be able to announce such a wealth of new data in one go all of which
further cements our reputation as the go-to broker for quality price data across the energy
space, said Richard Frape, Global Head of Market Data at Marex Spectron.
Weather and
Emissions
Marex Spectron is a long-established supplier of market data on the Natural Gas, Electricity,
Coal, Oil Products, Freight, Metals and Environmental markets.
Other
Data
Vendors
London, October 13, 2014: Global energy and commodity news and price reporting agency
Argus has successfully completed an external assurance review of the policies and processes
53
In Depth
October 2014
Market
Analysis
Argus Extends and Completes Third Review of Energy Benchmarks

Process in Line with IOSCO PRA Requirements
Petroleum
Nat Gas
Finance
Weather and
Emissions
Argus description of its policies and procedures together with the full assurance review report
are available at www.argusmedia.com/About-Argus/How-We-Work
Softs and
Metals
The IOSCO PRA Principles were published in October 2012 and endorsed by the G20 in
November 2012. They cover governance, control, quality, integrity and conflict management
in relation to commodity benchmark price assessments published by PRAs and require an
annual external audit.
Coal
Argus Media chairman and chief executive Adrian Binks said: Argus is glad to have
completed successfully our third and extended review of our energy benchmarks, carried out
by PwC. This demonstrates Argus long-standing commitment to identifying and adopting
best practice in commodity price reporting. We are proud to be leading the way on applying
the IOSCO PRA Principles to energy and commodity price reporting and are also pleased that
IOSCO has recognized our achievements.
Other
Argus methodologies are published at www.argusmedia.com/methodology.
Data
Vendors
The IOSCO PRA Principles are available at www.iosco.org/library/pubdocs/pdf/

IOSCOPD391.pdf.
Market
Analysis
Media contacts:
London
Seana Lanigan
+44 20 7780 4272
seana.lanigan@argusmedia.com
54
In Depth
October 2014
Power
In its implementation report, published last month, IOSCO concluded that Argus and three
other PRAs have made good progress with regard to the PRA Principles. IOSCO said it was
clear that the implementation of the PRA Principles had support across the PRAs business
activities, from data collection supervision through to executive level management.
Editorial
Independent assurance provider PwC reviewed a detailed description of the policies and
procedures designed and established by Argus to ensure compliance with the requirements of
the IOSCO PRA Principles.
Summary
Argus led the way in October 2013 with the first independent review of oil benchmarks and
was the first agency to extend the IOSCO PRA Principles to non-oil benchmarks, which it did in
January 2014. Argus has now brought oil and non-oil benchmarks onto the same assurance
timeline and has conducted the reasonable assurance review that IOSCO now recommends.
that it uses to establish price benchmarks for oil, thermal coal, coking coal, natural gas and
biomass. These processes are designed to ensure compliance with the principles for price
reporting agencies (PRAs) set out by the International Organization of Securities Commissions
(the IOSCO PRA Principles).
Finance
Weather and
Emissions
Other
Data
Vendors
The new Argus Rare Earths service, available through the Argus Direct platform, draws on the
market-leading rare earths pricing and analysis provided by Metal-Pages, a UK-based
company acquired by Argus in May 2014. The service provides detailed market commentary,
prices and market-relevant news.
Softs and
Metals
Argus Media metals vice-president Nigel Tunna added: China wants to conserve its rare
earths resources as it is also the worlds biggest consumer of these elements and they form
part of its industrial strategy for moving into higher technology manufacturing.
Coal
Argus Media chairman and chief executive Adrian Binks said: Rare earths are critical to the
functioning of modern economies and to our everyday lives. Argus is pleased to be able to
offer reliable and impartial pricing information and analysis that will support the development
of a more efficient and transparent spot market for these strategic materials.
Nat Gas
In response to the growing need for greater transparency and impartial price information,
Argus has launched Argus Rare Earths, a news, pricing and analysis service.
Petroleum
And price changes will affect the rare earths supply balance. Mining companies outside China
are developing dozens of projects to establish alternative rare earth supply chains, despite
highly challenging market conditions.
Power
Rare earths are used in applications ranging from defence systems to consumer electronics,
magnets for the automotive sector and smart phones, so a shift in prices will have a clear
impact on consumers.
Editorial
China is likely to ease controls on its exports in a move that could lead to increased volatility
in the price of these strategic materials. But, at the same time, China will seek to pursue alternative measures to control rare earths production and exports. These could include reducing
the number of producers to just 6 groups, making it easier for the government to control the
industry, and replacing export tariffs with resource taxes on production.
Summary
London, Singapore, October 3, 2014: The global market for rare earths is approaching a
critical juncture as China, the worlds largest producer, reshapes its export and production
policies after losing a WTO trade case brought by the US, EU and Japan.
Rare Earths Market at Pivotal Point Ahead of New China Policies
Media contacts:
Market
Analysis
October 2014
55
In Depth
London
Seana Lanigan
+44 20 7780 4272
Power
Petroleum
Nat Gas
Coal
Softs and
Metals
Natural gas exported from new offshore fields in the European part of Russia seas will be
taxed on a formula based on the Argus TTF price, which is published daily in the Argus
European Natural Gas report.
Editorial
For crude and condensate produced at new offshore fields located in the Azov and Black seas
and in the Russian part of the Caspian Sea, MET will be calculated using the Argus Urals price
assessment for deliveries to the Mediterranean. The Argus Urals price for deliveries to
northwest Europe will be used for fields in the Baltic, White, Barents, Pechora and Kara seas.
The Argus ESPO Blend price will be the basis for calculating MET on output from fields in the
East Siberian, Chukchi, Bering and Laptev seas, as well as the seas of Japan and Okhotsk.
These price assessments are published daily in the Argus Crude report.
Summary
London, Moscow, October 2, 2014: The Russian government has announced that mineral
extraction tax (MET) for hydrocarbons produced at new Russian offshore fields will be
calculated on Argus-based formulas. The government resolution was published on
26 September and will come into effect on 3 October.
Tax Values for New Russian Offshore Fields to Be Calculated on

Argus-Based Formulas
Weather and
Emissions
Other
Media contacts:
London
Seana Lanigan
+44 20 7780 4272
Finance
Argus Media chairman and chief executive Adrian Binks said: Accurate and reliable energy
price assessments are essential for tax calculations and we are pleased that the Russian
government has chosen Argus to provide this service. Russia is a key producer and exporter of
oil and gas, and has chosen to use Argus prices for many purposes, including export duties for
crude oil, petroleum products and LPG.
Data
Vendors
Market
Analysis
56
In Depth
October 2014
Petroleum
Nat Gas
Coal
Softs and
Metals
Finance
Derivatives Markets
Market
Analysis
In Depth
57
Data
Vendors
Details on the natural gas volumes and prices are available in the enclosed monthly report.
Other
In September 2014, DufEnergy Trading SA joined PEGAS as a new member. The

company was admitted for trading on the French PEG Spot and Futures markets. Furthermore,
GASPOOL Balancing Services GmbH and Socit Gnrale S.A. were admitted for trading on
the TTF Spot market.
Weather and
Emissions
In September, trading volumes on the PEGAS Derivatives Markets totalled 30.9 TWh
(September 2013: 5.0 TWh). This represents the highest monthly volume ever traded on the
PEGAS Futures markets (previous record: 27.1 TWh in June 2014). The volume on the German
Futures markets (GASPOOL and NCG market areas) reached 6.9 TWh (September 2013:
2.0 TWh). In the French market areas, a total of 4.6 TWh was traded on PEG Nord and PEG
Sud Futures (September 2013: 2.4 TWh). The Dutch TTF Futures market registered a record
volume of 19.4 TWh traded in September (September 2013: 0.6 TWh). The previous record
was set in June 2014 with 18.4 TWh.
October 2014
Power
Trading volumes on the Spot Markets totalled 23.9 TWh in September, amounting to more
than twice the volume traded in September 2013 (10.6 TWh). The German spot markets
(GASPOOL and NCG market areas) reached again the record level of the previous month,
10.3 TWh (September 2013: 4.0 TWh). The volume includes 2.5 TWh traded in qualityspecific gas products. The French spot markets (PEG Nord, PEG Sud, PEG TIGF market areas)
registered a total of 7.1 TWh (September 2013: 4.1 TWh). The volume on the Dutch TTF spot
market increased to 6.5 TWh (September 2013: 2.5 TWh). The Belgian ZTP spot market
recorded 25,962 MWh. In September, transactions were concluded on all Spot spread
products, totalling a volume of 1.4 TWh.
Editorial
Spot Markets
Summary
Leipzig, Paris, October 7, 2014: PEGAS, the natural gas platform jointly established by the
European Energy Exchange (EEX) and Powernext, announced that a total volume of 54.8 TWh
was traded in September 2014 compared with 15.6 TWh traded in the same period of the
previous year. For the first time, the monthly volume exceeded the natural gas threshold of
50 TWh, thus, representing the highest monthly volume traded on the PEGAS markets. The
previous record was set in June 2014 with 48.8 TWh.
PEGAS: New Record Volume in September
Power
Petroleum
Nat Gas
The European Energy Exchange (EEX) is the leading European energy exchange. It develops,
operates and connects secure, liquid and transparent markets for energy and related
products on which power, natural gas, CO2 emission allowances, coal and guarantees of
origin are traded. In the context of its majority shareholding in Cleartrade Exchange (CLTX),
EEX additionally offers the markets for freight, iron ore, fuel oil and fertilizer. Clearing and
settlement of all trading transactions are provided by the clearing house European
Commodity Clearing (ECC). EEX is a member of Eurex Group. For more information: www.eex.com
Editorial
About EEX:
Summary
PEGAS is a cooperation between the European Energy Exchange (EEX) and Powernext. In the
framework of this cooperation, both companies combine their natural gas market activities to
create a pan-European gas offering. Members benefit from one common Trayport gas trading
platform with access to all spot and derivatives market products offered by the exchanges
for the German, French, Dutch and Belgian market areas. Furthermore, spread products between these market areas are tradable on the same trading platform. For more information:
www.pegas-trading.com
About PEGAS Pan-European Gas Cooperation:
Coal
About Powernext:
Softs and
Metals
PEGAS Monthly Figures Report for September 2014

Volumes
Weather and
Emissions
Sep 2014 in MWh
Sep 2014 in MWh
GASPOOL
4,482,101
2,132,809
NCG
5,811,493
4,772,391
PEG Nord
4,808,958
4,519,030
PEG Sud
2,093,557
59,830
PEG TIGF
157,650
n/a
TTF
6,530,861
19,367,623
ZTP
25,962
Total
23,910,582
30,851,683
58
In Depth
October 2014
Market
Analysis
Derivatives Market
Data
Vendors
Spot Market
Other
Finance
Powernext SA manages complementary, transparent and anonymous energy markets.

Powernext Gas Spot and Powernext Gas Futures were launched on 26 November 2008 in
order to hedge volume and price risks for natural gas in France, the Netherlands and Belgium.
Powernext manages the National Registry for electricity guarantees of origin in France since
1 May 2013. Powernext owns 50 % in EPEX SPOT and 20 % in EEX Power Derivatives. For
more information: www.powernext.com.
GASPOOL
EEX Daily Reference Price
19.506/22.388
NCG
19.566/22.437
PEG Nord
Powernext Gas Spot DAP Powernext Gas Spot EOD 19.68/23.78 19.32/24.39
PEG Sud
Powernext Gas Spot DAP Powernext Gas Spot EOD 22.64/29.33 22.81/30.29
TTF
19.331/22.140
EGIX (European Gas Index) Monthly Average
22.021
GASPOOL
EGIX Monthly Average
21.867
NCG
EGIX Monthly Average
22.169
PEG Nord
Powernext Gas Futures Monthly Index
22.63
PEG Sud
27.73
TTF
21.93
Coal
Germany
Nat Gas
Oct 2014 Index Value (in EUR/MWh)
Petroleum
Derivatives Market Index Name
Power
Sep 2014 Index Value (Min/Max in EUR/MWh)
Editorial
Index Name
Summary
Spot Market
Indices
Softs and
Metals
Flexibilization Is a Central Element of the Further Enhancement of

Power Markets
Finance
Berlin, Paris, September 29, 2014: The further flexibilization of legal, technical and
economical aspects of the European power market is a central factor of their successful
enhancement. This would be the only way to cope with the challenges emerging through the
energy transition in Europe and the rapid growth of renewable energy sources (RES).
Weather and
Emissions
Market
Analysis
In Depth
59
Data
Vendors
October 2014
Other
This was the key message of the speakers during the energy policy workshop organized by the
European Power Exchange EPEX SPOT at the beginning of September in Berlin. The
workshops title, After the EEG reform: capacity markets, energy transition and the future role
of European Power Exchanges, led to a vivid discussion between Patrick Graichen, Ph.D.
(director of German think-tank Agora Energiewende), professor Jan Horst Keppler (Scientific
Director of the Chair on European Electricity Markets at Universit Paris-Dauphine),
Jean-Franois Conil-Lacoste (Chairman of the Management Board of EPEX SPOT) and
the media.
Summary
Editorial
Power
Petroleum
Nat Gas
Jan Horst Keppler, in his contribution, underlined that capacity mechanisms in European
countries heavily differ due to the fact that the challenges were different in each country. In
France for example, heavy peak load needs to be covered, whereas in the UK, base load
capacities are missing. In Germany it is all about balancing the volatility of wind and solar
generation by using gas-fuelled power plants. It could be an option to pay for the standby of
these plants in order to assure their cost-effectiveness. Keppler stressed that capacity
markets are an intermediate solution that in the best case make themselves dispensable.
In his speech, Patrick Graichen called for a reduction of barriers that, in his opinion, hindered
flexibilization. Minimum load for fossil-fuelled power plants should be reduced, launch times
should be raised and ramps should be accelerated. He also expressed his support for the
temporary interruption of wind and solar generation, so that they would contribute to the
functioning of the entire market. In view of the further development of the EEG law the
German law on the support of RES scheduled for 2016, Graichen pointed out some open
issues. The European regulation on state aid would necessitate a switch to tenders from 2017
on. Furthermore, distortions, such as through own power consumption, have not been
eliminated in the latest amendment.
Softs and
Metals
Finance
Weather and
Emissions
About EPEX SPOT SE:

The European Power Exchange EPEX SPOT SE operates the power spot markets for Germany,
France, Austria and Switzerland (Day-Ahead and Intraday). Together these countries account
for more than one third of the European power consumption.
Coal
Jean-Franois Conil-Lacoste emphasized that especially power spot Exchanges have

contributed to flexibilization through their products. EPEX SPOT has launched 15-minute
contracts on the continuous German Intraday market already back in 2011. These contracts
are ideal to cover the increasing variations in RES generation. End of 2014, EPEX SPOT will
also launch a daily auction on the German market at 3 pm in order to use the high liquidity at
this moment of the day for a clear price signal on 15-minute basis. Conil-Lacoste invited
market participants explicitly to address further suggestions to Power Exchanges.
Other
Data
Vendors
Market
Analysis
60
In Depth
October 2014
Coal
Softs and
Metals
Finance
Weather and
Emissions
Other
Data
Vendors
Market
Analysis
61
In Depth
1 Brent Crude Oil Slides to Lowest Price Since 2010, CBC News, October 13, 2014, accessed October 27, 2014,
http://www.cbc.ca/news/business/brent-crude-oil-slides-to-lowest-price-since-2010-1.2797210.
2 Oil Dives after Big US Weekly Crude Stock Build, Reuters, October 22, 2014, accessed October 27, 2014,
http://www.reuters.com/article/2014/10/22/markets-oil-idUSL6N0SH1EW20141022.
October 2014
Nat Gas
Strong U.S. stockpile data put a lot of pressure on WTI. In the 4th week of October 2014, U.S.
crude inventories rose much more than expected, while the rising U.S. dollar and falling equity
market also pressured oil. According to EIA, U.S. crude inventories rose by 7.11 million barrels,
more than double the 2.7 million-barrel increase analysts expected.2 Consequently, a looming
U.S. contango, or a situation in which futures contracts are overpriced when compared to their
fair, present values, may mean further losses for the North American benchmark.
Petroleum
Global crude benchmarks reached their biggest quarterly loss since the summer of 2012. In
October 2014, Brent dropped due to weak demand and ample oil inventories. Brent reached its
lowest levels since 2010 after Saudi Arabia showed no sign of reducing its output in this global
gloomy economic condition. Dropping by nearly 25% since June, Brent prices experienced more
downward pressure after key OPEC producers signaled in mid-October that they are unlikely to
cut production.1
Power
On the New York Mercantile Exchange (NYMEX), prompt-month contracts for Brent and
Western Texas Intermediate (WTI) crude oil plunged for the 4th month in a row to the lowest levels
of the past 12 months. By the end of the last Monday of October 2014, the prices of Brent and
WTI both dropped by 9%. When compared to the previous month, in October 2014
prompt-month contracts for Brent dipped just below $90 USD/Bbl to settle at $89 USD/Bbl.
Meanwhile, the prompt-month contract prices for WTI dropped to $85 USD/Bbl,
$16 USD/Bbl lower than the same time last year. In October 2014, data from NYMEX future
settlements showed that Brent and WTI hit their lowest price levels for the last 12 monthsBrent
and WTI traded at $17 USD/Bbl and $13 USD/Bbl below the last 12-month average.
Furthermore, the last 12-month averages for Brent and WTI on NYMEX dropped to $106 USD/Bbl
and $98 USD/Bbl, respectively. The Brent-WTI spread (represented by the purple area in
the graph above) reached $3 USD/Bbl this month, which was $ 5 USD/Bbl below the last
12-month average.
Editorial
Summary
Crude Oil Brent vs. WTI: Prompt-Month Contract (NYMEX)
Power
Petroleum
Nat Gas
On the New York Mercantile Exchange (NYMEX), forward curves for Brent and Western
Texas Intermediate (WTI) prices fell in October 2014 for the next 24 months when compared
to September 2014. The average NYMEX Brent forward prices for delivery until November
2016 (represented by the blue line in the graph above) dropped by $10 USD/Bbl to
$91 USD/Bbl, while WTI (the red line) fell by $7 USD/Bbl to an average of $83 USD/Bbl for
the same delivery period. The Brent-WTI spread also dropped by 10% to $9 USD/Bbl (the
purple area) on average for the next 24 months.
Editorial
Summary
Crude Oil Brent vs. WTI: Forward Curve (NYMEX)
Coal
Finance
Weather and
Emissions
3 Oil Falls Below $86 as Oversupply, Global Economy Worries Weigh, Reuters, October 21, 2014, accessed
October 29, 2014, http://in.reuters.com/article/2014/10/20/markets-oil-idINKCN0I91QX20141020.
Softs and
Metals
This is the 4th month in a row that crude oil prices faced an uphill battle against oversupply
and sluggish demand. According to Reuters, oil prices are down more than 25% since June
due to a saturated oil market and tepid global demand from Europe to China.3 Consequently,
energy analysts have slashed forecasts of world oil demand growth for next year as the global
oil benchmarks are approaching a 4-year low.
Other
Data
Vendors
Market
Analysis
62
In Depth
October 2014
Petroleum
Nat Gas
Coal
Softs and
Metals
Finance
Weather and
Emissions
For the week ending October 22, 2014, EIAs Natural Gas Weekly Update reported that
record high natural gas production along with low demand caused the prices to stay low. In
the 3rd week of October 2014, dry gas production hit a new single-day high of 70.5 Bcf/d,
with all regions posting larger than the 5-year average build. Also, consumption of natural gas
for power generation fell 7.9% while temperatures during the storage report week were
2.7 degrees warmer than the 30-year average.4
Power
On the Intercontinental Exchange (ICE), natural gas prices remained almost flat in most of the
observed North American hubs by the end of October 24, 2014. When compared to the first
24 days of September, the prices dropped by 12% in New Yorks Transco Zone-6 to
$2.07 USD/MMBtu, by 3% in Californias PG&E Citygate to $4.35 USD/MMBtu, by 3% in
Chicago to $3.88 USD/MMBtu, and by 2% in Henry Hub to $3.85 USD/MMBtu. Comparing
October 2014 prices to last years prices, monthly average gas prices increased in Henry Hub,
Chicago Citygates, and PG&E by 5%, 2%, and 9%, respectively. However, New Yorks Transco
Zone-6 prices dropped this year by 44% from $3.68 USD/MMBtu in 2013.
Editorial
Summary
North American Natural Gas Spot Prices (ICE)
Other
Data
Vendors
Market
Analysis
October 2014
63
In Depth
4 Natural Gas Weekly UpdateWeek Ending October 22, 2014, U.S. Energy Information Administration,
October 23, 2014, accessed October 27, 2014, http://www.eia.gov/naturalgas/weekly.
Nat Gas
Coal
Softs and
Metals
Finance
Weather and
Emissions
5 Natural Gas Weekly UpdateWeek Ending October 22, 2014, U.S. Energy Information Administration,
October, 22, 2014, accessed October 27, 2014, http://www.eia.gov/naturalgas/weekly.
Petroleum
For the week ending October 22, 2014, EIAs Natural Gas Weekly Update reported that
National Oceanic and Atmospheric Administration (NOAA) predicted above average
temperatures for the 2014-15 winter season. Also, EIA forecasts total natural gas
consumption will be 86.5 Bcf/d this winter, 4.5 Bcf/d lower than last winters average
consumption of 91.0 Bcf/d. The reduction in EIAs forecast comes mainly from the residential
and commercial sectors.5
Power
On the Intercontinental Exchange (ICE), natural gas futures available for trade in the next
12 months at Henry Hub dropped slightly due to tepid demand in October 2014 (until the last
Monday of the month) when compared to the previous month. The average price of Henry Hub
natural gas October 2014 contracts for delivery in the next 12 months (represented above by
the orange line) dropped by 3% to average at $3.81 USD/MMbtu when compared to
September 2014 contracts (represented by the blue line). Data from ICE suggests the spread
between October 2014-September 2014 contracts (represented by the red bar) averaged at
$0.11 USD/MMbtu for the next 12 months.
Editorial
Summary
Henry Hub Natural Gas Forward Curve (ICE)
Other
Data
Vendors
Market
Analysis
64
In Depth
October 2014
Nat Gas
Coal
Softs and
Metals
Finance
Weather and
Emissions
Petroleum
In October 2014, the 2-year average in all observed cities was slightly warmer this year,
except for Chicago. When comparing the past 2-year average of October temperatures, this
years October felt warmer in San Diego, San Antonio, and New York by 3, 2, and 1 degree(s),
respectively. On the other hand, Chicago was 1 degree below the 2-year average.
Furthermore, the city of Chicago experienced the largest weather fluctuations again among all
observed cities, as the temperature reached 17C on October 2, dropped to 0C on October 4,
and rose to 13C on the 24th. It is safe to say that October 2014 was slightly warmer across all
observed cities when compared to the past 2-year average.
Power
From September 2014 to October 24, 2014, the monthly temperature dropped in all
observed North American cities due to seasonality. Data from AccuWeather showed
Chicago, New York, San Antonio, and San Diego felt colder by 7, 6, 4, and 2 degrees
Celsius (C), respectively, when compared to the previous month. In October 2014, the
average monthly temperatures in the observed North American cities were as follows: Chicago
(9C), New York (16C), San Antonio (25C), and San Diego (23C).
Editorial
Summary
Actual Weather (AccuWeather)
Other
Data
Vendors
Market
Analysis
65
In Depth
October 2014
Petroleum
Nat Gas
Coal
Softs and
Metals
Comparing day-ahead pricing of October 2013 with October 2014, CAISO SP-15, PJM,
ERCOT, and NYISO increased 17%, 5%, 16%, and 1%, respectively. In October 2014,
electricity prices in California went up as warmer weather along with lower-than-expected
output from wind and solar farms (43% below day-ahead projections for the period) pushed
an upward pressure on the market.6
Power
On the Intercontinental Exchange (ICE), electricity day-ahead (DA) prices rose in observed
North American ISOs when compared to the previous month, except CAISO-SP15. From
September 2014 to October 2014, electricity day-ahead prices decreased in C
AISO SP-15 by 4% to $49.90 USD/MWh. However, NYISO, PJM, and ERCOT (Texas)
day-ahead prices rose by 8% to $66.79 USD/MWh, by 5% to $61.37 USD/MWh, and by 8%
to $38.87 USD/MWh, respectively.
Editorial
Summary
Electricity: Day-Ahead Prices (ICE)
Finance
Weather and
Emissions
6 New York Spot Power Jumps as Grid Demand Tops Forecasts, Bloomberg, October, 6, 2014, accessed
October 27, 2014, http://www.bloomberg.com/news/2014-10-06/new-york-spot-power-jumps-as-grid-demand tops-forecasts.html.
Other
Data
Vendors
Market
Analysis
66
In Depth
October 2014
Summary
Editorial
InDepth
How the US Shale Gas

Revolution Curtailed
Asian Petrochemicals
Power
Petroleum

By Yi-Jeng Huang
Nat Gas
Coal
Softs and
Metals
Finance
Weather and
Emissions
Other
In Depth
67
Market
Analysis
October 2014
Data
Vendors
In this In Depth article, well dive into the economics of steam cracking
and develop petrochemical margin models to study the viability of crackers
in the EU, Asia, and USGC. Finally, well evaluate to what extent USGC competition
affects Asian crackers and look at short- and medium-term
trends in light of our data models.
Summary
Editorial
On April 28, 2014, Reuters and other sources reported that Sinopec Corp, the largest
petrochemical producer in China, had put on hold a massive $3.1 billion USD ethylene plant
in Qingdao, a refinery hub in Chinas Shandong province.1 The official reason cited was a safety reassessment, following last Novembers fatal pipeline explosion which killed
62 individuals. The real reason is likely more complicated.
InDepth
Petrochemical Trouble Brewing in the Middle Kingdom
Power
Petroleum
Ethylene (or ethene) is a 2 carbon chain hydrocarbon known in the petrochemical industry
as an olefin, or a hydrocarbon containing at least 1 carbon to carbon double bond. It is often
called King of Petrochemicals because this intermediate produces an astonishingly wide
array of economically valuable goods such as plastics, textiles, engine coolants and
lubricants, medical and agricultural chemicals, and consumer products like shampoos,
detergents, paints, solvents, textiles, and adhesives (Figure 1). Propylene (or propene) is
another economically important 3 carbon chain olefin affected by similar factors. Ethylene
and propylene are produced in massive fiery furnaces called steam cracking plants (or
crackers). A typical modern steam cracker produces 3 million tons of products and requires
$1 billion USD to construct.
Nat Gas
Figure 1: Ethylene: The Foundation of Many Commercial Applications

ETHYLENE GLYCOL
ETHANOL
POLYESTERS
ETHYLENE OXIDE
GLYCOL ETHERS
(Plastic)
VINYL ACETATE
(Adhesives)
(Textiles, Bottles)
(Solvents, Paints)
ETHOXYLATES
Finance
ETHYLENE
(Disinfectant)
(Antifreeze)
Softs and
Metals
(Solvent)
Coal
POLYETHYLENE
(Paints, Textiles, Cosmetics)
TETRACHOLOROETHYLENE
1,2-DICHLOROETHANE
(Intermediates)
Weather and
Emissions
(Refrigerants)
TRICHOROETHYLENE
(Medical Anesthetic)
VINYL CHLORIDE
(Vinyl)
POLYVINYL CHLORIDE
(PVC Pipes, Cables, Furniture, Clothing, Walls and Floors)
Other
Data
Vendors
Since China is the worlds largest manufacturer, exporter, and one of the biggest industrial
consumers of petrochemicals in the world, creating new crackers there might have seemed
like a no-brainer even a few years ago. As recently as 2012, the powerful State Council
(Chinas cabinet) issued a white paper in support of Chinas 12th 5-Year Plan (2011-2015)
which stated that developing ethylene production technology was a political and economic
68
In Depth
October 2014
Market
Analysis
1 Chen Aizhu, Sinopec Puts Hold on $3.1 Bln Qingdao Ethylene Project-Source, Reuters, April 28, 2014, accessed
October 1, 2014, http://uk.reuters.com/article/2014/04/28/sinopec-petrochemicals-ethylene idUKL3N0NK2O020140428.
Summary
Editorial
InDepth
How the US Shale Gas

Revolution Curtailed
Asian Petrochemicals
Power
Petroleum

By Yi-Jeng Huang
Nat Gas
Coal
Softs and
Metals
Finance
Weather and
Emissions
Other
In Depth
67
Market
Analysis
October 2014
Data
Vendors
In this In Depth article, well dive into the economics of steam cracking
and develop petrochemical margin models to study the viability of crackers
in the EU, Asia, and USGC. Finally, well evaluate to what extent USGC competition
affects Asian crackers and look at short- and medium-term
trends in light of our data models.
Summary
Editorial
On April 28, 2014, Reuters and other sources reported that Sinopec Corp, the largest
petrochemical producer in China, had put on hold a massive $3.1 billion USD ethylene plant
in Qingdao, a refinery hub in Chinas Shandong province.1 The official reason cited was a safety reassessment, following last Novembers fatal pipeline explosion which killed
62 individuals. The real reason is likely more complicated.
InDepth
Petrochemical Trouble Brewing in the Middle Kingdom
Power
Petroleum
Ethylene (or ethene) is a 2 carbon chain hydrocarbon known in the petrochemical industry
as an olefin, or a hydrocarbon containing at least 1 carbon to carbon double bond. It is often
called King of Petrochemicals because this intermediate produces an astonishingly wide
array of economically valuable goods such as plastics, textiles, engine coolants and
lubricants, medical and agricultural chemicals, and consumer products like shampoos,
detergents, paints, solvents, textiles, and adhesives (Figure 1). Propylene (or propene) is
another economically important 3 carbon chain olefin affected by similar factors. Ethylene
and propylene are produced in massive fiery furnaces called steam cracking plants (or
crackers). A typical modern steam cracker produces 3 million tons of products and requires
$1 billion USD to construct.
Nat Gas
Figure 1: Ethylene: The Foundation of Many Commercial Applications

ETHYLENE GLYCOL
ETHANOL
POLYESTERS
ETHYLENE OXIDE
GLYCOL ETHERS
(Plastic)
VINYL ACETATE
(Adhesives)
(Textiles, Bottles)
(Solvents, Paints)
ETHOXYLATES
Finance
ETHYLENE
(Disinfectant)
(Antifreeze)
Softs and
Metals
(Solvent)
Coal
POLYETHYLENE
(Paints, Textiles, Cosmetics)
TETRACHOLOROETHYLENE
1,2-DICHLOROETHANE
(Intermediates)
Weather and
Emissions
(Refrigerants)
TRICHOROETHYLENE
(Medical Anesthetic)
VINYL CHLORIDE
(Vinyl)
POLYVINYL CHLORIDE
(PVC Pipes, Cables, Furniture, Clothing, Walls and Floors)
Other
Data
Vendors
Since China is the worlds largest manufacturer, exporter, and one of the biggest industrial
consumers of petrochemicals in the world, creating new crackers there might have seemed
like a no-brainer even a few years ago. As recently as 2012, the powerful State Council
(Chinas cabinet) issued a white paper in support of Chinas 12th 5-Year Plan (2011-2015)
which stated that developing ethylene production technology was a political and economic
68
In Depth
October 2014
Market
Analysis
1 Chen Aizhu, Sinopec Puts Hold on $3.1 Bln Qingdao Ethylene Project-Source, Reuters, April 28, 2014, accessed
October 1, 2014, http://uk.reuters.com/article/2014/04/28/sinopec-petrochemicals-ethylene idUKL3N0NK2O020140428.
Editorial
Figure 2: Projected New Cracker Capacity Coming on Stream in Asia and the Mideast
from 2013-20163
Summary
InDepth
priority for the Chinese.2 Figure 2 clearly shows that Chinese cracker projects alone will still
exceed half of all new Asian capacity projected to come online from 2013-2016.
Power
Petroleum
Nat Gas
Coal
Softs and
Metals
Data
Vendors
Market
Analysis
In Depth
69
Other
October 2014
Weather and
Emissions
2 Information Office of the State Council, Chinas Energy Policy 2012, Global Times, October 24, 2012, accessed
October 1, 2014, http://www.globaltimes.cn/content/740169.shtml.
3 Peh Soo Hwee and Ong Sheau Ling, 2014 Asia Olefins & Aromatics Market Review and Outlook, (presented
at the General Matter and Raw Materials Committee, Asia Petrochemical Industry Conference (APIC), PEACH Hall,
Pattaya, Thailand, May 16, 2014), accessed October 1, 2014, http://www.apic2014.com/download/GM%202_
ICIS_2014%20Asia%20Olefins%20&%20Aromatics%20Market%20Review%20and%20Outlook_APIC%202014.pdf.
4 NGL consists of a mix of ethane, propane, butane and other heavier hydrocarbons and should not be confused with
liquefied natural gas (LNG) which is essentially refrigerated, purified methane.
5 Shale Gas: Reshaping the US Chemicals Industry, PWC, October 2012, accessed October 1, 2014,
http://www.pwc.com/en_US/us/industrial-products/publications/assets/pwc-shale-gas-chemicals industry-potential.pdf.
Finance
Yet even as the Chinese planned to ramp up their cracker capacity, a shale gas boom was
underway across the Pacific in the U.S., driven by the confluence of new fracking and
horizontal drilling technologies, friendly policies, and the availability of gas infrastructure and
water resources. In October 2012, PricewaterhouseCoopers (PwC) published a white paper
which predicted that a dramatic growth of shale gas production would trigger corresponding
growth in natural gas liquid (NGL)4 production in the U.S. Gulf Coast (USGC) region.5 PwC
further predicted that abundant shale NGLs constrained within the USGC region would allow
USGC crackers to deliver ethylene at half the cost of Asias naphtha crackers in the near
future, undercutting the economic component of the Chinese governments plan.
Editorial
Power
Petroleum
Finance
Weather and
Emissions
Steam crackers are usually specifically engineered for a particular feedstock. Unless
especially designed for flexibility, crackers cannot use feedstock interchangeably without
costly upgrades.
Softs and
Metals
Cracking is energy intensive, requiring energy input to preheat hydrocarbon and boil water
feeds to generate steam. Fuel oil is often the energy source used to power crackers.
Coal
To understand a petrochemical margin model, we must first identify all significant variable
costs of the model and the chemistry and engineering constraints, which requires a brief foray
into the world of petrochemical engineering. Ethylene7 and propylene are produced
industrially using a process called steam cracking, in which saturated hydrocarbons are broken down into unsaturated hydrocarbons called olefins.8 While youre welcome to read Appendix 2 for more details on steam crackers, the following should be noted for our
marginmodel:
Nat Gas
Cracking Chemistry Feedstock Constraints and Products Yields
Cracker Product Yield
Market
Analysis
In Depth
70
Data
Vendors
6 Chen Aizhu, Sinopec Stalls Petrochemical Build-Up as U.S. Competition Grows, Financial Post,
April 28, 2014, accessed October 1, 2014, http://business.financialpost.com/2014/04/28/sinopec-stalls petrochemical-build-up-as-u-s-competition-grows/?__lsa=9291-3111.
7 Due to differences in industry and scientific terminology, ethylene, propylene, and olefins (industry terminology)
are synonymous with ethene, propene, and alkenes (scientific terminology), respectively.
8 A. Clements et al., The Essential Chemical Industry Online, University of York, 2010, accessed October 1, 2014.
http://www.essentialchemicalindustry.org/processes/cracking-isomerisation-and-reforming.html.
Other
The product yield table in Figure 3 shows the proportion of products generated per unit of
feedstock cracked. These ratios are important for building margin models because they can
be used to calculate the proportion of products produced and therefore, the revenue
generated per unit of feedstock cracked. The relevant variable costs are listed on the next page.
October 2014
Summary
In this In Depth article, well dive into the economics of steam cracking and develop
petrochemical margin models to study the viability of crackers in the European Union (EU),
Asia, and USGC. Finally, well evaluate to what extent USGC competition affects Asian
crackers and look at short- and medium-term trends in light of our data models.
InDepth
This U.S.-centric vision of the petrochemical industry appears to be coming to pass today.
An article following up on Sinopec Corp described a petrochemical sector-wide scale back of
Chinese investments earlier this year, with Sinopec alone shelving or postponing almost
4 million tons of annual capacity of ethylene.6 PetroChina is also stalling various
petrochemical joint ventures, including a massive $13 billion USD joint venture with Shell in
East China. The fact that these drawdowns are happening despite the Chinese governments
clear political mandate suggests Chinese plants may be the victims of economicsand U.S.
shale gas is the proverbial smoking gun.
Power
Product
Editorial
Figure 3: Steam Cracker Product Yield (%) by Mass from Various Feedstocks9,10
Summary
Naphtha feedstock yields less ethylene and propylene but more pygas, including profitable
aromatic compounds. It also offers a bit of wiggle room, allowing more ethylene or pygas
to be produced depending on prevailing economics.
InDepth
Ethane and propane feedstocks yield the most ethylene and propylene by mass and a
small amount of pyrolysis gas (pygas).
Feedstock
Naphtha
Gas Oil
Hydrogen
Methane
27
15
Ethane
78
42
35-25
23-15
Propene
19
16
14
Butenes
2
RPG*
19-29
20
23-31
Fuel Oil
Coal
Buta-1,3-diene
Nat Gas
Propane
Petroleum
Ethane
Softs and
Metals
Cracker Feedstock Availability
Other
Data
Vendors
9 Ibid.
10 RPG: Raw Pyrolysis Gasoline (pygas) can be processed to produce aromatics (such as Benzene) and gasoline.
Weather and
Emissions
By contrast, ethane and propane olefin crackers are derived from the liquid fraction of raw
natural gas, NGL. Unlike crude oil, natural gas is considered a regional commodity because it
requires either gas pipelines or special ships and is therefore not easily transportable. Ethane
and propane crackers tend to be located close to natural gas production regions or near gas
pipelines. Most ethane and propane crackers are in production regions like the Middle East or
near extensive gas infrastructure, like the USGC.
Finance
Figure 3 shows all feedstocks may yield varying amounts of ethylene and propylene. Not every
cracker around the world has the same access to different types of feedstocks. Naphtha or
LPG olefin crackers rely on feedstock refined from crude oil and typically operate near crude
refineries. Crude oil is a global commodity and easily transported, hence crude refineries
(and attached olefin crackers) can operate economically far away from crude oil sources.
Most Asian olefin crackers depend upon refineries importing crude oil from the Middle East.
Market
Analysis
71
In Depth
October 2014
Summary
Editorial
InDepth
Key Takeaways from the Physical World into Models

Cracker variable costs consist of feedstock and fuel costs.
Cracker revenue comes from the combined market value of output products, whose exact
yield distribution depends on feedstock choices, according to Figure 3.
Steam crackers generally cannot convert between feedstocks without expensive upgrades.
Feedstock choices are constrained by geography. Naphtha feedstock is crude oil based,
hence globally available. Ethane and propane feedstocks are regional, restricted mainly to
the USGC and Middle East.
Power
Petroleum
Cracker Margins Comparison of EU, Asia, USGC

Summary of Methodology
Nat Gas
We produced 3 cracker margin models produced based on typical naphtha, ethane, and
propane crackers. The naphtha model was further subdivided into 3 regions: EU, USGC, and
Asia. The ethane and propane model was for the USGC. The basic formula we used for our
cracker margin was:
Cracker margin = market value of all cracker products market value per unit feedstock fuel
Finance
0.78 x 56.5 U.S. cents/lb x 22.04 = +$971.30 USD/MT of feedstock
In Depth
72
Market
Analysis
11 MT= Metric ton
Data
Vendors
Converting the spot cracker margin model to futures is relatively straightforward in ZEMA,
assuming suitable futures or forward prices can be identified for each margin component. Feel
free to contact us with any specific questions regarding our model design.
Other
Each of our models used spot prices of products and feedstock appropriate to its location and
cracker type. For example, a USGC ethane cracker model made use of USGC ethylene market
prices and Mont Belvieu ethane feedstock prices. See Appendix 1 to view the data feeds used
in each model.
Weather and
Emissions
The cracker margin model was calculated using ZEMA, ZEs data management solution for
participants in energy and commodities markets, and back-tested against another industry
standard; it was found to track well. Methodology references from price assessment agencies
are usually not fully transparent, but nonetheless provide some guidance when building an
in-house model.
October 2014
Softs and
Metals
Ratio x market price of ethylene on a particular day x conversion factor

(standardized to USD/MT 11)
Coal
The sum of the market value of cracker products was obtained by multiplying the typical yield
ratio of a component product (Figure 3) with the market price of that product for a particular
trade date. For example, if an ethane cracker produced 78% ethylene by mass per unit of
ethane feedstock, then its contribution to the margin was:
Editorial
Power
Petroleum
Figure 4: (Top) Typical EU Naphtha Cracker Margin Model vs. Reference
Summary
Our naphtha cracker margin models are shown in Figure 4. From these ZEMA graphs, it is
quickly apparent that EU naphtha crackers had the worst margins of the 3 areas examined
during the first half of 2014. Margins ranged from highs of $300 USD/MT to lows of operating
at a loss during late May of 2014. USGC naphtha crackers operated with a healthy margin of
$300-500 USD/MT, and Asian crackers were somewhere in between the U.S. and EU. The
reference cracker margins we consulted matched our EU and USGC models almost exactly,
which indicates a similarity in our respective methodologies. An Asian reference cracker
margin was not available; therefore we used Northeast Asian price feeds and our cracker
methodology to model a typical cracker in Northeast Asia. We feel this model represents
margins in China, if the country was to sell products in international markets.
InDepth
Naphtha Cracker Margins
Nat Gas
Coal

Softs and
Metals
Finance
Weather and
Emissions
(Middle) USGC Naphtha Cracker Margin Model vs. Reference
Other
Data
Vendors
Market
Analysis
73
In Depth
October 2014
Summary
Editorial
InDepth
(Bottom) Asia Naphtha Cracker Margin Model

Power
Petroleum
Nat Gas
Finance
Weather and
Emissions
Our ethane/propane cracker margin methodology tracked reference margins closely for the
most part, except for a period of divergence from February-March. This divergence was
probably caused by a difference in pricing data sources or product yield ratios compared to
reference margins.
Softs and
Metals
If USGC naphtha margins compared well to their global counterparts, ethane and propane
cracker margins (Figure 5) looked even more remarkable. During the first half of 2014, our
ethane cracker models registered an eye-popping $1000 USD/MT in margins, while propane
crackers followed close behind at about $900 USD/MT. To model the effect of shale
gas-derived feedstock, Mont Belvieu12 purity ethane and propane prices were used in our
ethane/propane models. These feedstocks have been trading at attractive prices for the
USGC petrochemical industry due to significant NGL growth coupled with storage constraints
and a general lack of export options.
Coal
Ethane and Propane Cracker Margins
Other
Data
Vendors
Market
Analysis
October 2014
74
In Depth
12 Mont Belvieu is the main NGL hub in the U.S. and the key infrastructure that connects shale gas production centers
with refineries and crackers.
Summary
Editorial
InDepth
Figure 5: (Top) USGC Ethane Cracker Margin Model vs. Reference
Power
Petroleum
Nat Gas
(Bottom) USGC Propane Cracker Margin Model vs. Reference

Coal
Softs and
Metals
Finance
Weather and
Emissions
Other
Putting It All Together
Data
Vendors
Once we coded the 5 cracker margin models, we automated this entire process so that our
ZEMA model would be constantly updated with the newest data points and graphed. The
results are shown in Figure 6.
Market
Analysis
75
In Depth
October 2014
Summary
Editorial
InDepth
Figure 6: World Cracker Margin Models Naphtha (Asia, EU, USGC), Ethane (USGC),
Propane (USGC) Crackers
Power
Petroleum
Nat Gas
Coal
Figure 6 shows the 5 cracker margin model results from 3 locations, using
3 different feedstocks.
Finance
Ethane/propane cracker margin: In recent years, the shale gas boom has manifested at
Mont Belvieu in the form of abundant NGLs and derivative feedstocks. USGC ethane and
propane crackers therefore enjoyed a healthy competitive advantage compared to crude
oil-based feedstocks like naphtha and LPG. Based on our models, which are back-tested
against industry standards, ethane and propane crackers enjoyed a margin 2 to 3 times
that of their naphtha cracker competitors, which is a massive advantage.
Weather and
Emissions
Market
Analysis
In Depth
76
Data
Vendors
Over the last few years, weve seen ethane supply in the USGC dramatically increase as a
result of shale gas production. Weve also seen how it is bottlenecked at the USGC, to the
benefit of ethane/propane crackers fortunate enough to be nearby and to the detriment of
gas producers. In this In Depth article, weve shown how petrochemical engineering concepts,
feedstocks, and product prices in various regions can be used together to create cracker
margin models that help illuminate the current economic viability of crackers in the EU, Asia,
and USGC.
Other
Short- and Medium-Term Outlook for Asian Crackers
October 2014
Softs and
Metals
Naphtha cracker margin: USGC registered the highest margins due to the presence of
cheap naphtha feedstock, followed closely by Asian margins. EU naphtha crackers had the
lowest average margin of the models studied and were the only ones to register negative
margins during the first half of 2014.
Summary
Editorial
InDepth
Figure 7: USGC Ethane Cracker Margins vs. Asian Naphtha Cracker Margins
(Averaged Weekly)
Power
Petroleum
Nat Gas
Data
Vendors
Market
Analysis
In Depth
77
Other
October 2014
Weather and
Emissions
13 Joseph Chang, New Projects May Raise US Ethylene Capacity by 52%, PE by 47%, ICIS, January 16, 2014,
accessed October 1, 2014, http://www.icis.com/resources/news/2014/01/16/9744545/new-projects may-raise-us-ethylene-capacity-by-52-pe-by-47-/.
14 Jack Kaskey, Chemical Factory Boom at Risk as U.S. Ethane Heads Abroad, Bloomberg News, September 5, 2014,
accessed October 1, 2014, http://www.businessweek.com/news/2014-09-04/chemical-factory-boom-at-risk as-u-dot-s-dot-ethane-heads-abroad.
Finance
Ethane transportation: Even as U.S. organizations like Exxon Mobil are expanding their U.S.
petrochemical capacity in anticipation of continuing cheap shale gas feedstock,
transportation companies like Enterprise Products Partners are expanding their ethane
transport capabilities. Enterprise announced in April 2014 that it will start shipping
240,000 Bbl/day of ethane in 2016.14 After a sellout reception by international
corporations such as Saudi Basic Industries and Indias Reliance Industries, Enterprise is
now eyeing capital investments to expand their ethane transport fleet. A whole new class of
Softs and
Metals
No relative economic advantage lasts foreverin the medium term, market forces will begin
to respond to close arbitrage. We foresee at least three factors which may narrow the cracker
margin spread between the U.S. and Asia:
Coal
Putting it all together, Figure 7 shows the magnitude of the marginal advantage U.S. ethane
crackers have when compared to Northeast Asian naphtha crackers, which explains the rapid
pace of American capacity expansions and the slowdown in Chinese projects, such as
Sinopecs Qingdao facility.13 A typical ethane cracker in the USGC, supplied by shale
gas-derived feedstock, shows a favorable $600-$800 USD/MT margin spread over a
typical naphtha cracker in Asia. In the short term, for every ton of naphtha currently processed
by Chinese crackers, a USGC cracker burning ethane would earn more than twice as much in
estimated profits.
Petroleum
Nat Gas
Coal
Softs and
Metals
Finance
Weather and
Emissions
In the long term, macroeconomic factors come into play. Recent crude oil conferences have
provided useful perspectives on Asias refined products production and consumption
trajectory, notably the Argus Asia Crude Arbitrage Forum (September 2014) and the second
annual Platts Asian Crude Oil Summit (October 2014). Industry experts consensus is that the
slowdown in Chinese GDP growth will be structural, as the country shifts from an export-driven
economy to a consumer-based economy. This combination of slower long-term growth and
increasing refinery capacity means Chinese, Indian, and all Asian refineries will have to either
export excess supplies into new markets or risk severe underutilization. This regional
competition and pressure on refined product margins comes at a time when the U.S. is
undergoing a shale revolution and the Middle East is increasing its refining capacity in a quest
to move up the value chain.18 For the Asian refinery industry, this unfortunate confluence of
events will continue to provide headwinds and pressure margins in the foreseeable future.
Power
U.S. condensate exports: As a result of a federal law issued in the 1970s, the U.S. is barred
from exporting crude oil anywhere except Canada. Condensates derived from crude oil
constitute a grey area in this legislation, though. Prior restrictions on condensate exports
were partially lifted this past summer by the U.S. Bureau of Industry and Security (BIS) for
two industry participantsPioneer Natural Resources and Enterprise Product Partners.17
If this workaround of export restriction holds (and this is a big if), a new wave of lightly
processed U.S. crude may come into effect, increasing the worlds supply of naphtha.
Editorial
U.S. naphtha feedstock exports: According to the EIA, the U.S. has not exported naphtha
for petrochemical feedstock purposes for over than a decade. This changed as of
February 2014, when EIA reported new petrochemical naphtha exports at a rate of
29 KBbl/day.16 In subsequent months, this trend continued at an average rate of 20 KBbl/
day. If this trend continues, it may give a floor to global naphtha feedstock prices,
potentially boosting margins for naphtha crackers everywhere. Naphtha itself is derived
from petroleum condensates.
Summary
InDepth
ships very large ethane carriers (VLEC)15are presently being built in South Korean and
Chinese shipyards. As their name suggest, these ships specialize in bringing ethane into
the global market, providing an outlet for cheap USGC ethane. We expect these ships to
start making an impact on USGC ethane prices in as soon as 5 years.
Other
In Depth
78
Market
Analysis
October 2014
Data
Vendors
15 Gary Howard, The Ethane Market and the Concept of the VLEC, Seatrade Global, August 27, 2014, accessed
October 1, 2014, http://www.seatrade-global.com/news/americas/the-ethane-market-and-the-concept of-the-vlec.html.
16 U.S. Exports of Naphtha for Petrochemical Feedstock Use, EIA, September 29, 2014, accessed October 1, 2014,
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MNFEXUS2&f=M.
17 Nick Snow, BIS Condensates Ruling Galvanized Crude Exports Debate, Speakers Say, OGJ, September 2014,
accessed October 1, 2014, http://www.ogj.com/articles/2014/09/bis-condensates-ruling-galvanized crude-exports-debate-speakers-say.html.
18 Middle East refining and cracking capacity growth deserves its own dedicated analysis and is outside the scope
of this article.
ASIA NAPHTHA CRACKER

MARGIN MODEL
USGC NAPHTHA CRACKER

MARGIN MODEL
USGC ETHANE CRACKER

MARGIN MODEL
USGC PROPANE CRACKER

MARGIN MODEL
Petroleum
EU NAPHTHA CRACKER
MARGIN MODEL
Power
WORLD PETROCHEMICAL MARGIN SUMMARY
Editorial
Appendix 1, Figure 1: Various Price Feeds Used for Each Model
Summary
Appendix 1: Modeling Cracker Margins with ZEMA
InDepth
In summary, petrochemicals are a microcosm of the global refining business and general
economic growth. Asian cracker margins are constrained on the production side by the
relatively high prices of naphtha feedstock and on the consumption side by the changing
market trajectory of China. American crackers, on the other hand, are buoyed by shale
gas-derived ethane feedstock, which is bottlenecked at the USGC. Until ethane transportation
becomes a significant option or naphtha prices drop significantly, American ethylene
producers can continue to look forward to rolling in money.
Finance
Weather and
Emissions
Other
Butadiene CIF USG
RBOB 83.7 ppt Pipe Houston
Propylene Dlvd Houston
Ethylene FD USGC
Purity Propane Mt Belv Pipe
Butadiene CIF USG
Ethylene FD USGC
Purity Ethane Mt Belv Pipe
Natural Gas Houston Ship Channel
Butadiene CIF USG
Benzene Gulf M1
Ethylene FD USGC
No 6.3% USGC FO
Naphtha Huston 5-15
Butadiene CFR China
Gasoline S. China
Benzene FOB Korea Mo+1
Propylene CFR China
Ethylene CFR NE Asia
FO 180 2% FOB SG
Naphtha FOB Arab Gulf
Butadiene NWE
Gasoline EU
Benzene CIF ARA
Propylene FD NWE
Ethylene FD NWE
Steam cracker units are facilities which consume feedstock such as naphtha, liquefied
petroleum gas, ethane, propane, or butane mixed with steam. These units then crack the
feedstock into final products via special high temperature chambers and reaction quenching
chambers.19 In theory, many energy commodities may be processed into petrochemicals,
including crude oil, natural gas, coal, even biomass, however only a few processes meet the
stringent requirements of scale, feedstock availability and cost in the real world. Steam
crackers are denoted in Appendix 2, Figure 1 as SC. This diagram comes from an academic
paper which explores all the possible ways to actually produce olefins.20
Softs and
Metals
FO 1% CIF NWE
Coal
Naphtha CIF NEW
Nat Gas
Appendix 2: Steam Crackers
Data
Vendors
79
In Depth
October 2014
Market
Analysis
19 A. Clements et al., The Essential Chemical Industry Online.

20 Tao Ren et al., Olefins from Conventional and Heavy Feedstocks: Energy Use in Steam Cracking and Alternative
Processes, Energy 31.4 (March 2006): 425-451, accessed October 1, 2014, https://www.google.com.
sg/url?sa=t&rct=j&q=&esrc=s&source=web&cd=13&cad=rja&uact=8&ved=0CF4QFjAM&url=https%3A%
2F%2Fwww.fkit.unizg.hr%2F_download%2Frepository%2FPRPP_2013_Steam_cracking_Olefins.pdf&ei=
kvVJVLeoM4r-iALox4CQCQ&usg=AFQjCNF8P6-EA9UzvDra-lZ6lJOjU2frgg&bvm=bv.77880786,d.cGE.
SEP
OFF GASES
DCC
REC
SR
GAS OIL
NAPHTHA
PROPANE
PD
GAS
SC
NAPHTHA
OM
SC
HTUL
ETHANE
FEM
OD
METHANOL
HG
BIO ACID
AND ACETONE
SYN-GAS
GS
RCY
FT
ETHANOL
DH
Nat Gas
OU
HP
FP
CO2
Petroleum
C4 +
LIQ
ETHANE LPG
CC
ORGANIC WASTE
BIOMASS (wood etc.)
Power
HEAVY OIL
OC
COAL
Editorial
REF
NATURAL GAS
Summary
CRUDE OIL
InDepth
Appendix 2, Figure 1: A Comprehensive Diagram of Olefin Producing Technologies21
BATH
OLEFINS (ethylene, propylene and other products, depending on different situation)
Softs and
Metals
Finance
Weather and
Emissions
Other
Data
Vendors
SC:
SEP:
SR:
Bio-acid acetone to hydrocarbons (e.g olefins) [5];

Catalytic Cracking or Catalytic Pyrolysis;
Deep Catalytic Cracking, etc. (See table 5);
De-hydration processs (e.g. methanol to olefins, methanol to propylene and ethanol dehydration) [12, 56];
Fermentation {57, 58];
Flash pyrolysis, sometimes in the presence of methane [58];
Fischer-Tropsch synthesis (using syngas CO and H2 mixture to synthesize methanol or other products) [5];
Gasification and liquidefaction [5, 57];
Gas stream reactor technologies, e.g. shockwave reactors (Table 5);
Hydrogenation [5, 57];
Hydro-Pyrolysis (see Table 5);
Hydro-Thermal Upgrading Liquefaction which produces naphtha frombiomass feedstock [5, 57];
Oxidative coupling of methane via ethane [5];
Oxidative Dehydrogeneration of ethane [5];
Olefin Metathesis, e.g. ABB-Lummus Olefin Conversion Technology, IFP-CPC meta-4 [59];
Olefins Upgrading (conversion of C4 - C10) to light olefins, e.g. Superflex [60], Propylur [61] and Olefins Cracking [44].
Propane dehydrogenation [62, 63];
Re-cycling pyrolsis using organic waste, such as discarded plastics, used rubber, etc. [5, 57];
Recovery of refinery off gases, which contains ethylene, propylene, propane, etc. [57];
Refinery processes. Distillation of crude oil produces naphtha and heavy oil. Catalytic cracking produces off gases.
Cryogenic separation and absorption produces ethane and LPG;
Stream cracking (conventional);
Gas separation process which produces methane, ethane and propane;
Steam Reforming of natural gas to produce methanol.
Coal
BATH:
CC:
DCC:
DH:
FM:
FP:
FT:
GAS:
GS:
HG:
HP:
HTUL:
OC:
OD:
OM:
OU:
PD:
RCY:
REC:
REF:
Market
Analysis
A quick survey of industry jargon suggests that cracker types can be identified by either the
feedstock they use or product they produce. For example, ethylene cracker is used to
denote a plant that produces ethylene, but does not specify the type of feedstock used. On
October 2014
80
In Depth
21 Ibid.
Editorial
Power
Aizhu, Chen. Sinopec Puts Hold on $3.1 Bln Qingdao Ethylene Project-Source. Reuters. April 28, 2014. Accessed
October 1, 2014. http://uk.reuters.com/article/2014/04/28/sinopec-petrochemicals-ethylene-idUKL3N0NK2O020140428.
Summary
Bibliography
InDepth
the other hand, ethane cracker refers to a plant which uses ethane as feedstock to produce
various products, such as ethylene and propylene. This article analyzes feedstock economics,
so it will use the latter convention. A great resource that explains both U.S. cracker margins
and the cracker industry in general is RBNs Daily Energy Post.22
Clements, A. et al. The Essential Chemical Industry Online. University of York. 2010. Accessed October 1, 2014.
http://www.essentialchemicalindustry.org/processescracking-isomerisation-and-reforming.html.
Nat Gas
Chang, Joseph. New Projects May Raise US Ethylene Capacity by 52%, PE by 47%. ICIS. January 16, 2014. Accessed
October 1, 2014. http://www.icis.com/resources/news/2014/01/16/9744545/new-projects-may-raise-us-ethylene-capacity-by-52-pe-by-47-/.
Petroleum
---. Sinopec Stalls Petrochemical Build-Up as U.S. Competition Grows, Financial Post. April 28, 2014. Accessed
October 1, 2014. http://business.financialpost.com/2014/04/28/sinopec-stalls-petrochemical-buildup-as-u-s-competition-grows/?__lsa=9291-3111.
Daily Energy Post. RBN Energy LLC. Accessed October 1, 2014. https://rbnenergy.com/daily-energy-post.
Coal
Howard, Gary. The Ethane Market and the Concept of the VLEC. Seatrade Global. August 27, 2014. Accessed
October 1, 2014. http://www.seatrade-global.com/news/americas/the-ethane-market-and-the-concept-of-thevlec.html.
Finance
Information Office of the State Council. Chinas Energy Policy 2012. Global Times. October 24, 2012. Accessed
October 1, 2014. http://www.globaltimes.cn/content/740169.shtml.
Weather and
Emissions
Integrated Heating System of Cracking Furnaces. Linde Engineering. Accessed October 1, 2014.
http://www.linde-engineering.com/internet.global.lindeengineering.global/en/images/Furnace_Heating_
System19_9839.pdf.
Kaskey, Jack. Chemical Factory Boom at Risk as U.S. Ethane Heads Abroad. Bloomberg News. September 5, 2014.
Accessed October 1, 2014. http://www.businessweek.com/news/2014-09-04/chemical-factory-boom-at-riskas-u-dot-s-dot-ethane-heads-abroad.
Data
Vendors
Shale Gas: Reshaping the US Chemicals Industry. PwC. October 2012. Accessed October 1, 2014.
http://www.pwc.com/en_US/us/industrial-products/publications/assets/pwc-shale-gas-chemicals-industrypotential.pdf.
Other
Ren, Tao et al. Olefins from Conventional and Heavy Feedstocks: Energy Use in Steam Cracking and Alternative
Processes. Energy 31.4 (March 2006): 425-451. Accessed October 1, 2014. https://www.google.com.sg/
url?sa=t&rct=j&q=&esrc=s&source=web&cd=13&cad=rja&uact=8&ved=0CF4QFjAM&url=https%3A%2F%2Fwww.
fkit.unizg.hr%2F_download%2Frepository%2FPRPP_2013_Steam_cracking_Olefins.pdf&ei=kvVJVLeoM4r-iALox4CQCQ&usg=AFQjCNF8P6-EA9UzvDra-lZ6lJOjU2frgg&bvm=bv.77880786,d.cGE.
Market
Analysis
Snow, Nick. BIS Condensates Ruling Galvanized Crude Exports Debate, Speakers Say. OGJ. September 2014.
Accessed October 1, 2014. http://www.ogj.com/articles/2014/09/bis-condensates-ruling-galvanized-crudeexports-debate-speakers-say.html.
81
In Depth
22 Daily Energy Post, RBN Energy LLC, accessed October 1, 2014, https://rbnenergy.com/daily-energy-post.
October 2014
Softs and
Metals
Hwee, Peh Soo and Ong Sheau Ling. 2014 Asia Olefins & Aromatics Market Review and Outlook. Presented at the
General Matter and Raw Materials Committee, Asia Petrochemical Industry Conference (APIC), PEACH Hall,
Pattaya, Thailand, May 16, 2014. Accessed October 1, 2014. http://www.apic2014.com/download/GM%202_
ICIS_2014%20Asia%20Olefins%20&%20Aromatics%20Market%20Review%20and%20Outlook_APIC%202014.pdf.
Summary
Editorial
InDepth
U.S. Exports of Naphtha for Petrochemical Feedstock Use. EIA. September 29, 2014. Accessed October 1, 2014.
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MNFEXUS2&f=M.
Power
Petroleum
Nat Gas
About ZE PowerGroup Inc.:

ZE is an experienced software and strategic consulting firm that combines energy industry expertise with advanced
software development capabilities. ZE is the developer of ZEMA, a sophisticated enterprise data management and
analysis solution built to meet the challenges of participants in energy and commodities markets.
Softs and
Metals
Finance
Weather and
Emissions
Disclaimer:
ZE DataWatch is a report comprised of data updates and expectations for energy and commodities markets, powered
by ZEMA. The news contained in ZE DataWatch is for information purposes only. Although ZE PowerGroup believes
the information in this report to be correct, the organization does not warrant the accuracy or completeness of it.
Information in this report is not intended to provide financial, legal, accounting, or tax advice and should not be relied
upon in that regard. ZE PowerGroup is not responsible in any manner whatsoever for direct, indirect, special, or
consequential damages, howsoever caused, arising out of the use of this report.
Coal
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82
In Depth
October 2014

Datawatch October 2014

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Datawatch October 2014

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Po

HKEx Introduces First

Pending Oil Markets

How the US Shale Gas Revolution

Changes to data attributes,

Weather and Emissions

Monthly Market Analysis

CME Removes Live Cattle Weekly Options

Chinese Oil Trading to Get Support

It Is an Oil Buyers World:

Graph created with ZEMA

Advertising & Vendor Relationships

very symbolic that now we hear from China

Russia, a country economically dependent

Platts to Launch US Southeast, West Electricity Assessments

Into GTC: Georgia Transmission Corp. system

Graph created with ZEMA

Belgian OTC base load month

Belgian TOC base load month

Belgian OTC base load quarter

Belgian OTC base load quarter

Belgian OTC base load year

Belgian OTC base load year

Belgian OTC base load day-ahead

Belgian OTC base load day-ahead

Argus Adds New Series to European Electricity Publication

See the original announcement.

CWE Pushes Flow-Based Market Coupling Launch to March 2015

Specifications for each assessment are included below:

USGC to Mediterranean: Based on a 65,000-80,000 dwt Long Range 1 tanker carrying

Platts Proposes New USGC-North Brazil

Platts to Launch New US Clean Tanker Assessments

See the original announcement here.

Platts Adds New US Gasoline and Heating Oil Rationales

October 20, 2014

Gasoline Unl Sub Octane Group 3

ULS Heating Oil USGC Prompt Pipe

See the original announcement.

Platts Creates Asia East-West Fuel Oil Swap Assessments

See the original announcement.

Platts Begins Asia Brent, WTI Futures Assessments

See the original announcement.

Graph created with ZEMA

Platts Starts Europe Reformate Assessment

The codes are as follows:

AAXPM00 Reformate FOB AR Barge

Platts Adds New Pages and Derivatives Content to PFC Asia

Platts Gasoline Unleaded 92 Singapore Time Spread Swaps

Platts Gasoline Singapore Swaps

Platts Gasoline Unleaded 92 Singapore-Brent, Dubai Cracks

Platts Naphtha Japan Time Spread Swaps

Platts Naphtha Japan Swaps

Platts Japan vs CIF NWE Naphtha Swaps

Platts Singapore Swap Front Months and Futures

Platts FO 180 FOB Singapore vs FO 3.5 Rotterdam Barges

Platts FO 3.5 Rotterdam Barges Time Spread Assessments

Platts Asia ICE Brent Futures Time Spread Assessments

Platts Asia NYMEX WTI Futures Time Spread Assessments

Platts Asia WTI-Brent Futures Time Spread Assessments

See the original announcement.

Argus Generates New Mediterranean Crude Assessments

Frequency Differential Basis Description

North Sea Dated Basrah Light cif Augusta

North Sea Dated Basrah Light cif Augusta